PNB Housing Finance Gets Additional ₹5,000 Cr Bank Facilities Rated 'IND AAA'

PNB Housing Finance has received India Ratings' assignment of 'IND AAA'/Stable rating to its additional bank facilities worth ₹5,000 crores, while the rating agency has also affirmed existing ratings on the company's debt instruments. The development was communicated to stock exchanges through a regulatory filing under SEBI's listing regulations.

Rating Assignment Details

India Ratings and Research has taken comprehensive rating actions on PNB Housing Finance's debt portfolio:

Instrument Type:	Amount (₹ crores)	Rating	Action
Additional Bank Facilities:	5,000	IND AAA/Stable	Assigned
Existing Bank Facilities:	6,500	IND AAA/Stable	Affirmed
Non-Convertible Debentures:	4,955	IND AAA/Stable	Affirmed

Rating Rationale and Strategic Support

The 'IND AAA' rating reflects India Ratings' expectation of timely support from Punjab National Bank (PNB), which holds a 28% stake in PNB Housing Finance. The rating agency emphasized PNB's commitment to providing liquidity and equity support as per banking guidelines, with PNB maintaining its stake and sharing the brand name.

The rating also acknowledges PNB Housing Finance's position among India's top housing financiers, having demonstrated resilience across multiple business cycles. The company has shown consistent improvement in profitability and asset quality while achieving granularisation of its loan book.

Key Financial Metrics

PNB Housing Finance's strong financial performance underpins the rating assignment:

Financial Parameter:	Value
Assets Under Management:	₹83,900 crores
Return on Assets (Annualized):	2.76%
Tangible Net Worth:	₹17,860 crores
Leverage Ratio:	3.6x
Gross NPAs:	1.04%

Business Positioning and Growth Strategy

With 356 branches across India and an operational track record spanning over three decades, PNB Housing Finance has established a significant presence in the housing finance sector. The company has completely granularised its portfolio with the run-down of its wholesale book and entered the affordable housing finance segment, which exceeded ₹6,000 crores.

India Ratings expects the company's credit costs to remain modest given tightened underwriting norms and the retail nature of its loan book. However, the performance of the affordable housing finance portfolio, being at a nascent stage with high growth, remains a key monitoring point.

Regulatory Compliance

The rating assignment was communicated to BSE and NSE through a formal intimation dated December 29, 2025, in compliance with Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements. The detailed rating rationale and supporting documentation have been made available on the company's website at pnbhousing.com.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.78%	-3.37%	+3.52%	-9.91%	+19.85%	+217.32%

PNB Housing Finance Limited (PNBHF) has received a significant boost to its credit profile as India Ratings and Research (Ind-Ra) upgraded the company's long-term credit rating to 'IND AAA' from 'IND AA+', with a Stable outlook. This upgrade applies to PNBHF's non-convertible debentures (NCDs) worth INR 49.55 billion and bank loan facilities of INR 65 billion.

Key Factors Behind the Upgrade

The rating upgrade reflects several positive factors:

Expected Support from Parent Bank: Ind-Ra anticipates timely support from Punjab National Bank (PNB) in terms of liquidity and equity, as PNB maintains its stake in PNBHF and continues to share its brand name.
Strong Market Position: PNBHF is recognized as one of India's top housing finance companies, with a proven track record across multiple business cycles.
Improved Financial Performance: The company has demonstrated consistent improvement in profitability and asset quality, with its Return on Assets (RoA) rising to 2.76% in the first half of FY2026.
Robust Capital Buffers: PNBHF's tangible net worth reached INR 178.6 billion in 1HFY26, with a stable leverage ratio of 3.6x.
Enhanced Asset Quality: The company's gross non-performing assets (NPAs) reduced to 1.04% in 1HFY26, with nil corporate gross NPAs.

Financial Highlights

Particulars	1HFY26	FY25	FY24
Total adjusted assets (INR million)	856,626.00	822,903.00	722,175.00
Total adjusted equity (INR million)	178,636.00	166,275.00	147,787.00
Profit after tax (INR million)	11,582.00	19,490.00	15,274.00
Return on average assets (%)	2.76	2.52	2.20
Tier 1 capital (%)	29.20	28.40	27.90

Diversified Resource Profile

PNBHF has maintained a diversified resource profile, with the ability to raise funds from various sources:

Deposits comprised 28% of the total funding mix as of September 2025.
The company has banking lines from multiple public, private, and foreign banks.
Loans from the National Housing Bank (NHB) stood at 13.9% in 1HFY26.

Future Outlook and Challenges

While the rating upgrade is a positive development, Ind-Ra has identified some areas that require monitoring:

Affordable Housing Segment: The performance of PNBHF's affordable housing finance portfolio, which is at a nascent stage with high growth, remains a key area to watch.
Liquidity Management: As of September 2025, PNBHF's asset-liability profile showed a cumulative negative gap of INR 32 billion in the six months to one-year bucket. However, the company's total liquidity stood at INR 122.2 billion, covering upcoming debt repayments.
Competitive Landscape: PNBHF's ability to expand its franchise in the face of competitive pressures will be crucial for maintaining its market position.

The upgrade to 'IND AAA' reflects PNBHF's strengthened position in the housing finance sector and its improved financial metrics. However, the company will need to navigate challenges in the affordable housing segment and maintain its liquidity position to sustain this rating in the future.