PNB Housing Finance Limited has reported strong financial results for the second quarter of fiscal year 2025-26, showcasing significant growth in its retail loan book and improved asset quality.

Key Highlights

• Retail loan book grew by 17% year-on-year to ₹79,439.00 crore
• Disbursements reached nearly ₹6,000.00 crore, marking a 20% sequential growth
• Gross NPA improved to 1.04% from 1.24% in the previous year
• Profit after tax grew 24% year-on-year to ₹582.00 crore

Loan Book and Disbursements

The company's retail loan book witnessed a robust growth of 17% year-on-year, reaching ₹79,439.00 crore. This growth was primarily driven by the Affordable and Emerging market segments, which together grew by 34% year-on-year and now contribute 38% of the retail loan book.

Disbursements for the quarter stood at nearly ₹6,000.00 crore, representing a strong 20% sequential growth. The Affordable and Emerging segments showed particularly impressive growth, with disbursements increasing by 31% and 23% year-on-year, respectively.

Asset Quality and Profitability

PNB Housing Finance reported a significant improvement in asset quality, with gross NPA decreasing to 1.04% from 1.24% in the previous year. The company recorded a credit cost reversal of 53 basis points, attributed to recoveries of ₹59.00 crore from the written-off pool and an ECL release of ₹70.00 crore from a corporate loan foreclosure.

Profit after tax grew by 24% year-on-year to ₹582.00 crore, driven by positive operating leverage and improved asset quality. The return on assets (ROA) for Q2 stood at 2.73%.

Affordable Housing Business (Roshni)

The company's Affordable housing business, branded as Roshni, showed remarkable growth:

• Loan book grew by 121% year-on-year to ₹6,531.00 crore
• Disbursements increased by 31% year-on-year to ₹828.00 crore
• Incremental yields improved to 12.1% from 12% a year ago

The company has expanded its Affordable housing presence to 198 branches across 130+ high-potential districts in 15 states.

Financial Metrics

Management Commentary

Jatul Anand, Executive Director of PNB Housing Finance, stated, "Despite the challenges we faced in Quarter 2, the business has continued to show steady progress, be it growth in loan book, disbursements, and improvement in asset quality."

The company maintains its growth guidance of 17-18% for the fiscal year and plans to add 40-50 branches annually. The management also indicated that the CEO selection process is ongoing, with disclosures to be made to stock exchanges at an appropriate time.

PNB Housing Finance remains committed to its strategy of focusing on high-yielding business segments while maintaining strong asset quality and risk-adjusted returns. The company's performance in Q2 FY26 demonstrates its resilience and ability to execute its growth plans effectively.

PNB Housing Finance Limited has announced a significant leadership change, with Executive Director Jatul Anand stepping in to lead the company on an interim basis. This move comes as the company navigates through a transitional phase in its top management.

Leadership Transition

The company disclosed that Mr. Girish Kousgi, who served as the Managing Director and CEO, has vacated his position effective October 28, 2025. Kousgi had submitted his resignation on July 30, which was accepted by the board. In light of this development, PNB Housing Finance has appointed Jatul Anand, currently serving as Executive Director, to steer the company temporarily.

Regulatory Approvals in Process

PNB Housing Finance emphasized that it is actively working on obtaining the necessary regulatory approvals for a new Managing Director and CEO. The company stated that it would make appropriate disclosures regarding the appointment of a new leader once the regulatory process is completed.

Interim Leadership Structure

During this transitional period, Jatul Anand will lead the management team under the guidance of the Board Chairman, Mr. D Surendran, who serves as the Nominee Director from Punjab National Bank, the parent company of PNB Housing Finance.

Additional Changes

Kousgi will also step down from the boards of subsidiaries PHFL Home Loans and PEHEL Foundation.

Company Performance

Despite the leadership change, PNB Housing Finance reported strong quarterly results. The company's profit rose 24% year-on-year to ₹582.00 crore, and gross non-performing assets improved to 1.04% from 1.24%.

Market Response

Following the announcement, shares of PNB Housing Finance closed 1.01% higher at ₹937.00 on the NSE.

This leadership change comes at a crucial time for PNB Housing Finance as it continues to navigate the dynamic housing finance sector. Stakeholders will be keenly watching how this transition unfolds and its impact on the company's strategic direction in the coming months.