PNB Housing Finance Retail Loan Book Grows 16% YoY In Q3 FY26

The Board of Directors of PNB Housing Finance Limited today approved the Consolidated Unaudited Financial Results for the quarter ended 31st December 2025.

Key Highlights

·            The Retail Loan Asset grew by 16% YoY to INR 81,931 crore as on 31st Dec 2025, which is 99.7% of the Total Loan Asset.

·            The Affordable and Emerging Markets segment grew by 31% YoY and contributes 39% to the Retail Loan Asset.

·            The disbursement during Q3 FY26 grew by 16% YoY and 4% QoQ to INR 6,217 crore.

o    Affordable and Emerging Markets Segment grew by 11% YoY to INR 2,935 crore.

·            The Affordable and Emerging Market segment continues to contribute around 50% of the total retail disbursements.

·            Company has also considered estimated impact of new labour code amounting to Rs 6 crore under employee benefit expenses in the financial statement for the quarter ended December 31, 2025.

·            Recovered INR 49 crore from total written-off pool in Q3 FY26.

·            Gross NPA stood at 1.04% as on 31st Dec 2025 as compared to 1.19 % as on 31st Dec 2024.

·            Return on Asset is at 2.40% in Q3 FY26 (annualized) and 2.57% in 9M FY26 (annualized).

·            Capital Risk Adequacy Ratio stood at 29.46% as on 31st Dec 2025; Tier I at 28.92%.

Financial performance (Q3 FY25-26 vs Q3 FY24-25 and Q2 FY25-26)

·            Net profit increased by 7.7% YoY and declined by 10.5% QoQ to INR 520 crore.

·            Pre-provision Operating profit grew by 8.4% YoY and declined by 2.9% QoQ to Rs 628 crore. Excluding the new labour code impact, pre-provision operating profit grew by 9.4% YoY and 1.9% QoQ to 634 crore.

·            Net Interest Income grew by 10.9% YoY and 0.9% QoQ to INR 772 crore.

·            Operating expenditure increased by 16.7% YoY and 10.5% QoQ to INR 240 crore.

·            Yield at 9.72% in Q3 FY26 as compared to 9.95% in Q2 FY26 and 10.12% in Q3 FY25.

·            Cost of Borrowing is at 7.50% in Q3 FY26 as compared to 7.69% in Q2 FY26 and 7.83% in Q3 FY25.

·            Spread on loans is at 2.22% in Q3 FY26 as compared to 2.26% in Q2 FY26 and 2.29% in Q3 FY25.

·            Net Interest Margin stood at 3.63% in Q3 FY26 as compared to 3.67% in Q2 FY26 and 3.70% in Q3 FY25. Gross Margin, net of acquisition cost, stood at 3.98% in Q3 FY26.

·            With recovery from the overall written off pool, Credit Cost was -19 bps in Q3 FY26 as compared to

-53 bps in Q2 FY26 and -19 bps in Q3 FY25.

Financial performance (9M FY25-26 vs 9M FY24-25)

·         Net profit increased by 18.0% YoY to INR 1,635 crore.

·         Pre-provision operating profit grew by 13.4% to Rs 1,906 crore driven by positive operating leverage.

·         Net Interest Income grew by 13.9% YoY to INR 2,296 crore.

·         Operating expenditure increased by 12.1% YoY to INR 673 crore.

·         Yield at 9.89% in 9M FY26 as compared to 10.07% in 9M FY25.

·         Cost of Borrowing is at 7.65% in 9MFY26 as compared to 7.86% in 9M FY25.

·         Spread on loans is at 2.24% in 9M FY26 as compared to 2.21% in 9M FY25.

·         Net Interest Margin stood at 3.67% in 9M FY26 as compared to 3.67% in 9M FY25. Gross Margin, net of acquisition cost, stood at 4.03% in 9M FY26.

·         With recovery from overall written off pool, Credit Cost was -33 bps in 9M FY26 as compared to -17 bps in 9M FY25.

·         ROA improved by 9 bps on YoY basis at 2.57% in 9M FY26 (annualized).

·         ROE is at 12.31% (annualized) for 9M FY26.

Business Operations

o    The disbursements during Q3 FY26 grew by 15.6% YoY and 3.7% QoQ to INR 6,217 crore.

o    Disbursement in Affordable and Emerging Markets segment grew YoY by 11.3%, contributing around 50% of the total retail disbursements.

o    Loan Asset grew by 14.3% YoY and 3.0% QoQ to INR 82,203 crore as on 31st Dec 2025.

o    Retail loans grew by 15.9% YoY and 3.1% QoQ to INR 81,931 crore as on 31st Dec 2025. Within Retail, affordable Loan Asset grew by 86.0% YoY to INR 7,140 crore, Emerging Markets Loan Asset grew by 20.3% YoY to INR 24,998 crore and Prime segment grew by 8.1% YoY to INR 49,793 crore as on 31st Dec 2025.

o    Corporate loan book was at INR 272 crore as on 31st Dec 2025, reduced by 78.1% as compared to 31st Dec 2024.

o    Asset under Management (AUM) grew by 12.0% YoY and 2.6% QoQ to INR 86,048 crore as on 31st Dec 2025.

Distribution and Service Network

o    The Company has 358 branches as on 31st Dec 2025:

o    Affordable business presence in 198 branches

o    Dedicated 85 branches for Emerging Segment

o    75 branches for Prime segment

Asset Quality

o    Gross Non-Performing Assets stood at 1.04% as on 31st Dec 2025 as compared to 1.19% as on 31st Dec 2024 and 1.04% as on 30th Sep 2025.

o    Retail GNPA is 1.04% as on 31st Dec 2025 as compared to 1.21% as on 31st Dec 2024 and 1.05% as on 30th Sep 2025.

o    Corporate GNPA stands NIL since 30th Jun 2024 till now.

o    Net NPA stood at 0.68% as on 31st Dec 2025. 

Capital to Risk Asset Ratio (CRAR)

The Company’s CRAR stood at 29.46% as on 31st Dec 2025, of which Tier I capital is 28.92% and Tier II is 0.55% as compared 28.8% as on 31st Dec 2024, of which Tier I capital was 28.0% and Tier II was 0.8%.

Commenting on the performance Mr. Ajai Shukla, Managing Director & CEO said: "As we move forward, our focus remains unwavering on strengthening our retail book with a sharper emphasis on the Affordable and Emerging Markets segment. We are committed to enhancing asset quality and sustaining profitability

while ensuring responsible lending practices. Customer delight continues to be a key priority, and we are investing in solutions that simplify journeys, improve turnaround times, and deliver greater transparency for our customers.

Through operational excellence and the strategic use of technology, we aim to build a more agile, resilient, and future-ready organization. PNB Housing Finance will continue to enable homeownership across India and remain dedicated to creating long-term value for all our stakeholders."