PNB Housing Finance reported robust Q2 FY26 results, marked by a 17% year-on-year growth in the retail loan book, reaching INR 79,439 crore. Disbursements neared INR 6,000 crores, a 20% sequential rise. The Affordable and Emerging segments saw significant expansion, increasing by 34% year-on-year. Asset quality improved, with gross NPA declining to 1.04%. ROA improved to 2.73%. The company is focusing on expanding its Affordable Housing footprint.
Financial Performance Highlights
PNB Housing Finance showcased solid financial results for Q2 FY26. The retail loan book demonstrated substantial growth, climbing to INR 79,439 crore. Total Loan Book stood at INR 79,779 crores. The company also reported significant progress in disbursements, nearing INR 6,000 crores, reflecting a strong business momentum.
Segment Performance
The Affordable and Emerging market segments emerged as key growth drivers, collectively expanding by 34% year-on-year and now constitute 38% of the retail loan book. The company disbursed approximately 50% of retail loans in these high-yielding segments. Prime segment grew by 2%.
Asset Quality and Profitability
PNB Housing Finance made strides in improving asset quality. Gross NPA decreased to 1.04%, contributing to a credit cost reversal of 53 bps during the quarter. The company’s spread marginally improved to 2.26%. Return on Assets (ROA) for Q2 FY26 was reported at 2.73%, with H1 FY26 achieving 2.65%.
Strategic Initiatives and Outlook
The company remains focused on expanding its presence in the Affordable Housing segment and exploring retail growth opportunities. Its strategy includes reinforcing risk frameworks, improving customer experience and increasing the number of branches. The company plans to add approximately 40 to 50 branches each year to expand presence.
Affordable Housing Business Update
The Roshni business achieved a loan book of INR 6,531 crores, a 121% year-on-year growth. Disbursements reached INR 828 crores in Q2 FY26, a 31% increase. The yield is at 12.13%, marching towards 12.25% in the coming quarters.
Borrowing and Margins
The cost of borrowing declined by 7 bps sequentially to 7.69% in Q2 FY26. NIM remained range bound at 3.67% for the quarter.
Profit and Loss Statement
Net Interest Income grew to INR 765 crore at a growth rate of around 14% year-on-year. Profit After Tax (PAT) grew to INR 582 crores at a growth rate of 24% year-on-year. ROA for Q2 stood at 2.73% and ROE stands at 13.14% for Q2.
Source: BSE
