PNB Housing Finance , a prominent player in India's housing finance sector, has reported a significant increase in its financial performance for the second quarter. The company's net profit saw a substantial year-over-year growth, rising from Rs 470 crore to Rs 582 crore, marking a 24% increase.

Financial Highlights

Key Takeaways

Profit and Income Growth

• Net profit increased by 24%, indicating improved profitability.
• Total income grew by 13.40%, suggesting robust demand for housing finance products and services.
• Interest income rose by 13.30%, contributing significantly to overall income growth.
• Net interest income increased by 14%, reflecting improved lending operations.

Financial Metrics

• Net interest margin remained relatively stable at 3.67% compared to 3.68% in the previous year's second quarter.
• Gross NPAs declined to 1.04% from 1.24% at the end of the previous year's corresponding quarter, indicating better asset management.

Business Focus

• The Affordable and Emerging Market segments contributed 50% of total retail disbursements.

Capital Position

• The company maintained a capital adequacy ratio of 29.80%, with Tier I capital at 29.21%.

PNB Housing Finance's performance comes amid a dynamic housing finance sector in India, where factors such as urbanization, government initiatives for affordable housing, and a growing middle class continue to drive demand for home loans.

The company's focus on the Affordable and Emerging Markets segments appears to be contributing significantly to its retail business.

While these results are encouraging, it's important for investors and stakeholders to consider broader market conditions, regulatory environment, and long-term trends in the housing finance sector when evaluating the company's prospects.

PNB Housing Finance Limited has initiated a postal ballot process to seek shareholder approval for the appointment of Mr. D. Surendran as a Nominee Non-Executive Director. The company has issued a notice detailing the proposed resolution and the voting process.

Key Details of the Appointment

• Nominee: Mr. D. Surendran has been nominated by Punjab National Bank (PNB)
• Appointment Date: August 23, 2025 (as Additional Director)
• Proposed Term: Not exceeding five years
• Current Position: Executive Director at Punjab National Bank

Professional Background

Mr. D. Surendran brings a wealth of experience to the board:

• 35 years in the banking sector
• Started career with Canara Bank in 1990
• Progressed through various roles, including branch operations and circle management
• Worked across multiple states including Tamil Nadu, Andhra Pradesh, Karnataka, Delhi, and West Bengal

Qualifications

• Bachelor's degree in Agriculture
• Master's in Science
• Post-graduate Diploma in Software Engineering
• CAIIB (Certified Associate of Indian Institute of Bankers)

Voting Process

Shareholders can cast their votes electronically through the National Securities Depository Limited (NSDL) e-voting system.

Board Committees

Upon appointment, Mr. Surendran is set to join the following committees of PNB Housing Finance:

1. Nomination and Remuneration Committee (NRC)
2. Corporate Social Responsibility Committee (CSR)
3. Risk Management Committee (RMC)
4. Stakeholders Relationship Committee (SRC)

The Board of Directors has recommended the resolution for approval by the shareholders, citing Mr. Surendran's skills, qualifications, and extensive experience in the financial services industry as valuable assets for the company.

Shareholders are advised to refer to the detailed postal ballot notice for complete information on the voting process and the proposed resolution. The appointment is subject to shareholder approval and necessary regulatory permissions, including that of the Reserve Bank of India.