CARE

This has been achieved in the just ended fourth quarter of fiscal 2023-24.  India Ratings, ICRA and CARE Ratings affirmed and upgraded the company’s ratings to ‘AA+’ from ‘AA’ with ‘Stable’ outlook.  Girish Kousgi, MD & CEO, PNB Housing Finance, said: “We are proud to close this financial year with three consistent credit rating upgrades from Ind-Ra, ICRA and CARE in the last quarter alone. This accomplishment reflects our holistic growth strategy for boosting our business performance, and delivering on important financial metrics.

PNB Housing Finance gets three credit rating upgrades in a quarter

PNB Housing Finance Ltd., on Tuesday, announced growth plans for the affordable housing segment by deciding to open 40 new branches and aiming to achieve a loan book of ₹5,000 crore by the end of FY25, and ₹15,000 crore by FY27. Girish Kousgi, MD & CEO, PNB Housing Finance said, “Affordable housing is the cornerstone of our growth strategy. We are committed to making home ownership more inclusive and accessible for all by leveraging innovative products & schemes, expanding our presence, and prioritising customer-centric solutions.Our strong network of over 300 branches is equipped to offer the benefits of PMAY-U 2.0 to eligible applicants, and we invite them to fulfil their home ownership journey with us. We are also excited to introduce our new brand mascot Roshni to support our ambitious growth plans and make our affordable housing segment a beacon of hope for aspiring home buyers.

PNB Housing Finance targets loan book of ₹5,000 crore by FY25

PNB Housing Finance Limited announced that its board has recommended a proposal for the issuance of non-convertible debentures (NCDs) aggregating up to ₹10,000 crore. The proposal will be placed before shareholders for approval at the upcoming annual general meeting. The NCDs will be issued on a private placement basis in one or more tranches, subject to applicable regulatory approvals. The company's net interest income in the fourth quarter ended March 31, 2025, increased by 19.2% from last year, while its net profit went up by 28% to ₹567.1 crore. The bottom line was also aided by a provision write-back of ₹64.85 crore, compared to an expense of ₹6.63 crore last year. There was also a write-back of ₹36.13 crore in the previous quarter.

PNB Housing Finance plans to raise up to ₹10,000 crore via NCDs

PNBHF’s unseasoned affordable housing portfolio targets modest-income borrowers in Tier 2 cities, making it more sensitive to income shocks. Although higher pricing is intended to buffer the increased credit risk, repayment behavior across full economic cycles remains a key monitorable.



The issuer has made timely interest payments.

Girish Kousgi, CEO and MD

Ind-Ra’s 'IND AAA'/Stable rating (Nov 2025) is driven by the strategic support of promoter Punjab National Bank (PNB). As a key retail credit partner, PNB demonstrated its long-term commitment by participating in the FY24 rights issue and maintaining a board seat. Ind-Ra expects PNB to retain its ~28% stake, share its brand, and provide timely capital or liquidity support if required

With 30+ years of experience and an ₹839 billion AUM, PNB Housing Finance has pivoted to a retail-led model backed by a ₹25 billion equity infusion. Driven by the rapid growth of its "Roshni" affordable housing segment (₹60B+), the company successfully wound down its wholesale books, resulting in a recent 'IND AAA'/Stable rating upgrade.


PNBHF’s RoA rose to 2.76% in 1HFY26, driven by higher-yield affordable housing and a diversified, floating-rate funding mix. Profitability remains strong due to stable 1% operating expenses and gains from provision reversals, with further margin expansion expected as the retail mix grows.




PNBHF’s tangible net worth reached ₹178.6 billion in 1HFY26, fueled by steady accruals and a ₹25 billion FY24 equity infusion. Leverage has improved significantly to 3.6x from 5.0x in FY23, providing a strong foundation for a projected 17%–18% retail loan growth in FY26. With a target leverage of 4x–4.5x over the next two years, Ind-Ra views PNBHF’s capital buffers and asset quality as resilient, even under potential credit stress.



PNBHF’s credit costs fell to -0.44% in 1HFY26 as corporate NPAs reached zero following ARC sales and recoveries. With overall Gross NPAs down to 1.04% and a ₹10 billion recovery pool remaining, Ind-Ra expects a stable credit trajectory. The primary focus now shifts to monitoring the performance of the growing affordable housing portfolio.


PNBHF maintains a diversified funding profile, leveraging its PNB association to secure competitive rates. Key components include deposits (28%) and increasing NHB refinancing (13.9%), which lowers costs for affordable housing. By utilizing bank lines, bonds, and ECBs, the company ensures a healthy asset-liability profile with access to group liquidity during stress periods.


Rating agency	Rating	Needle position
CARE	AA + /Stable	near High Safety
IND	AAA Stable	near High Safety

Security Name: 8.39% PNB Housing Finance Limited 28 Apr 2026

ISIN: INE572E09346

YOUR EARNING

YOUR RISK

Repayment Priority

Security with Collateral?

LIQUIDITY INDICATOR #

ISSUER

Recent News

Related Videos

STEPS TO BUY THIS BOND

Information required for KYC

How to exit the investment?