PNB Housing Finance Limited has successfully raised ₹400 crore through the allotment of non-convertible debentures (NCDs), marking a significant move in its fundraising efforts. The company's Management Committee for allotment of NCDs approved this private placement on July 23, 2025.

Key Details of the Debenture Issue

• Issue Size: 40,000 NCDs with a face value of ₹1 lakh each
• Total Amount: ₹400 crore
• Coupon Rate: 7.4342% per annum
• Tenure: 5 years, maturing on July 23, 2030
• Security: Exclusive charge on specific book debts with minimum security coverage of 1 time
• Listing: To be listed on the Wholesale Debt Market (WDM) Segment of the National Stock Exchange of India Ltd. (NSE)

Payment Schedule

The debentures come with an annual interest payment schedule:

Additional Terms

In case of default in payment of interest or principal, an additional interest of 2% per annum over the coupon rate will be charged for the defaulting period.

Implications and Utilization

This debenture issue demonstrates PNB Housing Finance's ability to tap into the debt market for funding. The successful placement of these secured, rated NCDs indicates investor confidence in the company's financial stability and growth prospects.

The funds raised through this issue are likely to be utilized for the company's lending activities and general corporate purposes, potentially supporting its growth strategy in the competitive housing finance sector.

Management Changes

In a separate development, PNB Housing Finance also announced the resignation of Mr. Dilip Vaitheeswaran, Chief Sales Officer, effective August 14, 2025. Mr. Vaitheeswaran is leaving to pursue other opportunities after serving the company for over two years.

These recent developments - the successful fundraising and the management change - reflect the dynamic nature of PNB Housing Finance's operations as it navigates the evolving landscape of the Indian housing finance industry.

PNB Housing Finance Limited , a prominent player in India's housing finance sector, has announced an upgraded Net Interest Margin (NIM) forecast for the fiscal year 2025-26 (FY26), signaling improved profitability expectations. The company revealed this positive outlook during a recent conference call update, alongside its robust financial performance for the first quarter of FY26.

Q1 FY26 Financial Highlights

PNB Housing Finance reported impressive results for the quarter ended June 30, 2025:

• Net Profit After Tax increased by 23% year-on-year to ₹534.00 crore.
• Net Interest Income grew by 17% year-on-year to ₹760.00 crore.
• Net Interest Margin stood at 3.74%, compared to 3.65% in Q1 FY25.
• Gross Non-Performing Assets (GNPA) improved to 1.06% from 1.35% a year ago.

Retail Loan Growth and Asset Quality Improvement

The company's focus on retail lending has yielded positive results:

Notably, the Affordable Housing and Emerging Markets segments now constitute 37% of the Retail Loan Asset.

Strategic Focus on High-Yielding Segments

PNB Housing Finance has strategically emphasized growth in high-yielding segments:

• The Affordable Housing segment loan asset stood at ₹5,744.00 crore, registering a remarkable 143% growth year-on-year.
• The Emerging Markets segment loan asset reached ₹22,701.00 crore, growing by 20% year-on-year.
• Combined, these segments contributed 50% to the retail disbursement in Q1 FY26.

Management Commentary

Girish Kousgi, Managing Director & CEO of PNB Housing Finance, commented on the performance:

"The Company's focus on high-yielding business led to 30% YoY disbursement growth in the Affordable and Emerging markets segment during the quarter contributing 50% in the retail disbursement. Our asset quality continues to improve with GNPA of 1.06% as on June 30, 2025. While maintaining a balance between growth and profitability, our ROA stood at 2.57% annualised for FY 25-26. As we look forward, we are confident of our ability to achieve our stated guidance for the fiscal year."

Outlook and NIM Forecast Upgrade

The upgraded Net Interest Margin forecast for FY26 reflects the company's optimism about its future profitability. This positive outlook is supported by the strong performance in Q1 FY26, where the NIM already showed improvement, reaching 3.74% compared to 3.65% in the same quarter last year.

PNB Housing Finance's strategic focus on high-yielding segments, coupled with improved asset quality and strong growth in retail loans, positions the company well for sustained profitability in the coming quarters. The management's confidence in achieving its stated guidance further underscores the positive trajectory of the company's financial performance.

As PNB Housing Finance continues to navigate the dynamic housing finance landscape, investors and stakeholders will be keenly watching how this upgraded NIM forecast translates into actual performance throughout FY26.