PNB Housing Finance Limited (PNBHFL) has reported a robust financial performance for the first quarter of fiscal year 2025-26, registering a 23 per cent year-on-year (YoY) increase in net profit to Rs 534 crore.
The Board of Directors approved the consolidated unaudited financial results for the quarter ended June 30, 2025, with the company continuing its strategic focus on affordable and emerging market segments.
PNB Housing Finance saw strong growth in its retail loan portfolio, which rose by 18 per cent year-on-year to Rs 76,923 crore. The affordable housing segment showed impressive growth of 143 per cent to Rs 5,744 crore, while the emerging markets segment grew by 20 per cent to Rs 22,701 crore.
Retail disbursements increased by 14 per cent to Rs 4,980 crore, with half of this coming from the affordable and emerging segments. The company’s Asset Under Management (AUM) also grew by 13 per cent year-on-year, reaching Rs 82,100 crore. Asset quality improved, with Gross Non-Performing Assets (GNPA) dropping to 1.06 per cent from 1.35 per cent in the same quarter last year.
Commenting on the results, Girish Kousgi, Managing Director & CEO, PNB Housing Finance stated, “The company’s focus on high-yielding business led to 30 per cent YoY disbursement growth in the Affordable and Emerging markets segment during the quarter, contributing 50 per cent to the retail disbursement. Our asset quality continues to improve. While maintaining a balance between growth and profitability, our Return on Assets (ROA) stood at 2.57per cent (annualised).”
PNB Housing Finance delivered a strong financial performance in the first quarter of FY26. The company’s net profit increased by 23 per cent year-on-year to Rs 534 crore, while net interest income grew by 17 per cent to Rs 760 crore. Pre-provision operating profit also rose by 17 per cent, reaching Rs 632 crore.
The net interest margin (NIM) stood at 3.74 per cent, reflecting stable profitability. The spread on loans improved to 2.23 per cent, up from 2.11 per cent in the same quarter last year. Additionally, the cost of borrowing declined to 7.76 per cent, compared to 7.92 per cent in Q1 FY25, indicating better funding efficiency.
The company also reported a negative credit cost of -27 bps due to recoveries from previously written-off loans. Branch network incorporated 356 locations, including 200 focused on affordable housing, 80 on emerging markets, and 76 on the prime segment. Declined 56 per cent YoY to Rs 809 crore, in line with the company’s strategic shift toward retail focus.
Capital Adequacy of PNB Housing Finance has maintained a strong capital base, with a Capital to Risk-Weighted Assets Ratio (CRAR) at 29.68 per cent, including Tier I capital of 28.96 per cent.
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