PNB Housing Finance Limited has disclosed a significant fraud case involving borrower M/s. Sarv Realtors Private Limited, with the fraudulent amount totaling ₹237.43 crores. The company made this disclosure to stock exchanges in compliance with SEBI regulations on January 21, 2025.

Fraud Details and Financial Impact

The housing finance company identified and declared the fraud following applicable regulatory processes. The case has been duly reported to the National Housing Bank, the sector regulator, as required under regulatory guidelines.

Regulatory Compliance and Disclosure

PNB Housing Finance submitted the intimation under Regulation 30 and 51 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The disclosure was made simultaneously to both BSE Limited and National Stock Exchange of India Limited through official communication from Company Secretary Veena G Kamath.

The company emphasized that since the account was already written-off in FY 2022-23, there is no material impact on the overall financials and operations of the company. This prior write-off suggests the company had already recognized the potential loss in its financial statements during the previous fiscal year.

Legal Action and Recovery Efforts

PNB Housing Finance Limited has confirmed that it is pursuing appropriate legal action against the fraudulent borrower. The company is taking necessary steps to recover the dues and protect its interests through legal channels. The fraud case represents part of the ongoing challenges faced by housing finance companies in managing credit risks and borrower defaults.

The disclosure demonstrates the company's commitment to transparency and regulatory compliance, ensuring stakeholders are informed about material developments that could impact the organization's operations and financial standing.

PNB Housing Finance Limited has delivered strong financial performance in the third quarter of FY26, with consolidated net profit after tax reaching ₹520.35 crores, marking a 7.67% year-on-year growth from ₹483.27 crores in Q3 FY25. The housing finance company's Board of Directors approved these unaudited financial results on January 21, 2026, following comprehensive review by the Audit Committee and joint statutory auditors.

Quarterly Financial Performance

The company's Q3 FY26 results demonstrate solid operational strength across key metrics. Total revenue from operations increased to ₹2,119.02 crores compared to ₹1,941.76 crores in the corresponding quarter of the previous year.

Interest income, which forms the backbone of the company's revenue, grew by 9.25% to ₹2,019.39 crores from ₹1,848.43 crores in Q3 FY25. Fees and commission income also showed positive momentum, increasing to ₹94.57 crores from ₹88.12 crores year-on-year.

Nine-Month Performance Highlights

The company's nine-month performance for FY26 has been particularly impressive, showcasing sustained growth momentum across all major financial parameters.

For the nine months ended December 31, 2025, net profit after tax reached ₹1,635.44 crores, representing an 18.01% increase from ₹1,385.76 crores in the corresponding period of FY25. This strong performance reflects the company's effective business strategy and operational efficiency.

Operational Efficiency and Cost Management

The company maintained disciplined cost management while investing in growth. Finance costs for Q3 FY26 were ₹1,252.82 crores compared to ₹1,157.92 crores in Q3 FY25. Notably, the company reported a net reversal in impairment on financial instruments of ₹40.53 crores, indicating improved asset quality.

Employee benefits expenses increased to ₹133.87 crores from ₹98.29 crores in the previous year quarter, reflecting the company's continued investment in human resources and business expansion.

Earnings Per Share and Capital Structure

Earnings per share performance remained robust across both quarterly and nine-month periods:

The paid-up equity share capital stood at ₹260.51 crores as of December 31, 2025, compared to ₹259.86 crores in the previous year. During the nine months ended December 31, 2025, the company allotted 5,83,520 equity shares pursuant to the exercise of stock options by employees.

Regulatory Compliance and Governance

The financial results comply with Indian Accounting Standards and SEBI Listing Regulations. The company's joint statutory auditors, M/s. CNK & Associates LLP and M/s M. M. Nissim & Co LLP, have reviewed the results and provided unmodified conclusions.

The company maintains a debt-equity ratio of 3.63 and reported gross non-performing assets at 1.04% with net non-performing assets at 0.68%, indicating healthy asset quality. The provision coverage ratio stands at 34.77%, demonstrating prudent risk management practices.

Source: PNB Housing Finance Limited