PNB Housing Finance Limited , one of India's leading housing finance companies, has reported robust growth in its retail loan segment for the first quarter of the fiscal year 2025-26 (Q1 FY26). The company's financial results, released on July 21, 2025, showcase significant improvements across various business segments, particularly in retail loans and affordable housing.

Retail Loan Growth and Segment Performance

PNB Housing achieved an impressive 18% year-on-year (YoY) growth in its retail loan assets, which stood at ₹76,923.00 crore as of June 30, 2025. This growth was primarily driven by the company's focus on high-yielding segments:

• The affordable housing segment witnessed a remarkable 143% YoY growth, with loan assets reaching ₹5,744.00 crore.
• The emerging markets segment grew by 20% YoY, with loan assets of ₹22,701.00 crore.
• The prime segment saw a 10% YoY increase, with loan assets of ₹48,478.00 crore.

Disbursements and Profitability

Retail disbursements for Q1 FY26 grew by 14% YoY to ₹4,980.00 crore. Notably, the affordable housing and emerging markets segments contributed 50% of the total retail disbursements, highlighting the company's strategic focus on these high-yield areas.

The company's profitability also showed significant improvement:

• Net profit increased by 23% YoY to ₹534.00 crore.
• Net Interest Income grew by 17% YoY to ₹760.00 crore.
• Pre-provision operating profit grew by 17% YoY to ₹632.00 crore.

Asset Quality and Financial Ratios

PNB Housing Finance demonstrated improved asset quality:

• Gross Non-Performing Assets (GNPA) declined to 1.06% as of June 30, 2025, compared to 1.35% a year ago.
• Net Non-Performing Assets (NNPA) stood at 0.69%.

Key financial ratios also showed positive trends:

• Net Interest Margin (NIM) improved to 3.74% in Q1 FY26 from 3.65% in Q1 FY25.
• Return on Assets (ROA) increased to 2.57% (annualized) for Q1 FY26.

Expansion and Strategic Focus

The company has expanded its presence to 356 locations, including 200 branches for the affordable segment and 80 for the emerging markets segment. This expansion aligns with PNB Housing's strategy to focus on high-yielding business segments.

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."

Conclusion

PNB Housing Finance's Q1 FY26 results demonstrate the company's successful execution of its strategy to focus on retail loans, particularly in the high-yield affordable housing and emerging markets segments. With improved asset quality, expanded presence, and strong financial performance, the company appears well-positioned for continued growth in the coming quarters.

PNB Housing Finance , a leading housing finance company in India, has reported a robust financial performance for the first quarter. The company's consolidated net profit surged by 23% year-over-year, reaching ₹5.33 billion compared to ₹4.33 billion in the same quarter of the previous year.

Revenue Growth

The company's revenue also saw a significant increase, rising to ₹20.76 billion from ₹18.23 billion in the corresponding period of the previous year. This represents a growth of approximately 13.9% in total revenue.

Financial Highlights

Here's a breakdown of the key financial metrics for Q1:

Operational Performance

PNB Housing Finance demonstrated strong operational efficiency during the quarter. The company's interest income, which forms the core of its revenue, increased by 13.9% to ₹1,980.35 crore. This growth in interest income indicates an expansion in the company's loan book and effective interest rate management.

Asset Quality

The company maintained a healthy asset quality with a Gross Non-Performing Asset (GNPA) ratio of 1.06% and a Net Non-Performing Asset (NNPA) ratio of 0.69%. The provision coverage ratio stood at 35.36%, reflecting the company's prudent approach to risk management.

Capital Adequacy

PNB Housing Finance reported a strong capital position with a Capital to Risk (Weighted) Assets Ratio (CRAR) of 29.68% on a standalone basis, well above the regulatory requirements. This robust capital adequacy provides the company with a solid foundation for future growth and expansion.

Management Commentary

Girish Kousgi, Managing Director & CEO of PNB Housing Finance, commented on the results, saying, "We are pleased to report a strong start to the fiscal year with significant growth in both our top line and bottom line. Our focus on quality loan book growth, coupled with efficient cost management, has resulted in improved profitability. We remain committed to maintaining asset quality while pursuing sustainable growth opportunities in the housing finance sector."

The company's board meeting to approve these results was held on July 21, commencing at 04:00 P.M. (IST) and concluding at 06:05 P.M. (IST).

PNB Housing Finance's impressive Q1 performance reflects the company's resilience and strategic focus in a competitive market environment. As the company continues to leverage its strong market position and robust financial health, it is well-positioned to capitalize on the growing demand in India's housing finance sector.