Recovered INR 59 crore from total written-off pool in Q2 FY26
FinTech BizNews Service
Mumbai, October 28, 2025: The Board of Directors of PNB Housing Finance Limited today approved the Consolidated Audited Financial Results for the quarter ended 30th September 2025.
Key Highlights
· The Retail Loan Asset grew by 17% YoY to INR 79,439 crore as on 30th Sep 2025, which is 99.6% of the Retail Loan Asset.
· The Affordable and Emerging Market segment grew by 34% YoY and now contributes 38% to the Retail Loan Asset.
· The disbursement during Q2 FY26 grew by 12.2% YoY and 20.4% QoQ to INR 5,995 crore
o Affordable Segment grew by 30.7% YoY and 7.6% QoQ to INR 823 crore
o Emerging Markets Segment grew by 23.0% YoY and 22.2% QoQ to INR 2,122 crore
· The Affordable and Emerging Market segment continues to contribute 50% of the total retail disbursements.
· Recovered INR 59 crore from total written-off pool in Q2 FY26
· Gross NPA stood at 1.04% as on 30th Sept 2025 as compared to 1.24 % as on 30th Sept 2024.
· Return on Asset is at 2.73% in Q2 FY26 (annualized) and 2.65% in H1 FY26 (annualized)
· Capital Risk Adequacy Ratio stood at 29.80 % as on 30th Sept 2025; Tier I at 29.21%
Financial performance (Q2 FY25-26 vs Q2 FY24-25 and Q1 FY25-26)
· Net profit increased by 23.8% YoY and 9.0% QoQ to INR 582 crore
· Pre-provision Operating profit grew by 15.6% YoY to Rs 646 crore driven by positive operating leverage.
· Net Interest Income grew by 14.4% YoY and 0.6% QoQ to INR 765 crore;
· Operating expenditure increased by 7.6% YoY and 0.6% QoQ to INR 217 crore
· Yield at 9.95% in Q2 FY26 as compared to 9.99 % in Q1 FY26 and 10.05% in Q2 FY25
· Cost of Borrowing is at 7.69% in Q2 FY26 as compared to 7.76% in Q1 FY26 and 7.84% in Q2 FY25
· Spread on loans is at 2.26 % in Q2 FY26 as compared to 2.23% in Q1 FY26 and 2.21% in Q2 FY25
· Net Interest Margin stood at 3.67% in Q2 FY26 as compared to 3.74% in Q1 FY26 and 3.68% in Q2 FY25. Gross Margin, net of acquisition cost, stood at 4.05% in Q2 FY26
· With recovery from the overall written off pool, Credit Cost was -53 bps in Q2 FY26 as compared to -27bps in Q1 FY26 and -24 bps in Q2 FY25
Financial performance (H1 FY25-26 vs H1 FY24-25)
· Net profit increased by 23.6% YoY to INR 1,115 crore
· Pre-provision operating profit grew by 16.0% to Rs 1278 Crore driven by positive operating leverage.
· Net Interest Income grew by 15.5% YoY to INR 1,525 crore;
· Operating expenditure increased by 9.7% YoY to INR 433 crore
· Yield at 9.97 % in H1 FY26 as compared to 10.04% in H1 FY25
· Cost of Borrowing is at 7.74% in H1FY26 as compared to 7.88% in H1 FY25
· Spread on loans is at 2.23 % in H1 FY26 as compared to 2.16% in H1 FY25
· Net Interest Margin stood at 3.70% in H1 FY26 as compared to 3.66% in H1 FY25. Gross Margin, net of acquisition cost, stood at 4.06% in H1 FY26
· With recovery from overall written off pool, Credit Cost was -40 bps in H1 FY26 as compared to -16 bps in H1 FY25
· ROA improved by 20 bps on YoY basis at 2.65% in H1 FY26 (annualized)
· ROE is at 12.77% (annualized) for H1FY26
Business Operations
· The disbursements during Q2 FY26 grew by 12.2% YoY and 20.4% QoQ to INR 5,995 crore.
· Disbursement in Affordable and Emerging Markets segment grew YoY by 30.7% and 23.0% respectively, contributing 50% of the total retail disbursements.
· Loan Asset grew by 14.8% YoY and 2.6% QoQ to INR 79,771 crore as on 30th Sept 2025
o Retail loans grew by 16.9% YoY and 3.3% QoQ to INR 79,439 crore as on 30th Sept 2025. Within Retail, affordable Loan Asset grew by 120.8% YoY to INR 6,531 crore, Emerging Markets Loan Asset grew by 20.8% YoY to INR 23,994 crore and Prime segment grew by 8.3% YoY to INR 48,914 crore as on 30th Sept 2025
o Corporate loan book was at INR 332 crore as on 30th Sept 2025, reduced by 78.3% as compared to 30th Sept 2024
· Asset under Management (AUM) grew by 12.3% YoY and 2.2% QoQ to INR 83,879 crore as on 30th Sept 2025
Distribution and Service Network
· The Company has 365 branches / outreach locations as on 30th Sept 2025:
o Affordable business presence in 198 branches
o Dedicated 85 branches for Emerging Segment
o 73 branches for Prime segment
Asset Quality
· Gross Non-Performing Assets stood at 1.04 % as on 30th Sept 2025 as compared to 1.24 % as on 30th Sept 2024 and 1.06% as on 30th Jun 2025
o Retail GNPA is 1.05% as on 30th Sept 2025 as compared to 1.27% as on 30th Sept 2024 and 1.07% as on 30th Jun 2025
o Corporate GNPA stands NIL since 30th Jun 2025 till now.
· Net NPA stood at 0.69% as on 30th Sep 2025. NNPA in Retail segment is at 0.69%
Capital to Risk Asset Ratio (CRAR)
· The Company’s CRAR stood at 29.80% as on 30th Sept 2025, of which Tier I capital is 29.21% and Tier II is 0.59% as compared 29.13% as on 30th Sept 2024, of which Tier I capital was 28.06% and Tier II was 1.07%.
Commenting on the performance Mr. Jatul Anand, Executive Director said:
“Despite the challenges posed by leadership transitions, we have delivered a strong and resilient performance across all key metrics this quarter. This outcome reflects the strength of our organizational culture—anchored in responsible leadership, collective ownership, and unwavering commitment—which enables us to maintain momentum and deliver results without disruption. Our strategic focus continues to drive profitable growth. The Retail Asset grew by 17% YoY for FY25 reaching to INR 79,439 crore as on 30th Sept 2025. We disbursed almost INR 6,000 crore delivering a sequential growth of 20% vs Q1 FY26. Our continued emphasis on the Affordable and Emerging Markets segment has enabled us to sustain competitive spreads. This segment now constitutes 38% of the Retail Loan Asset portfolio. Our spreads improved to 2.26% in Q2 FY26, up from 2.23% in Q1 FY26 reflecting disciplined pricing and portfolio mix optimization. The portfolio asset quality continues to improve with Gross NPA at 1.04% as on 30th Sept 2025.
Looking ahead to FY26, we are focused on accelerating retail growth and expanding our Affordable and Emerging Markets segment footprint. Our goal is to enhance customer experience, strengthen risk frameworks, and maintain industry-leading asset quality while delivering sustainable returns. With a strong leadership team and a culture that never loses momentum, we are confident of creating long-term value for all stakeholders.”
