ICRA has reaffirmed PNB Housing Finance Limited’s credit rating at ICRA AA+/Stable for its enhanced bank facilities and existing debt instruments. This rating reflects PNBHFL’s established position in the mortgage finance industry and the expectation of continued support from Punjab National Bank (PNB). The rating also considers PNBHFL’s healthy capitalisation and improving asset quality. ICRA has also withdrawn ratings for matured instruments.
ICRA Reaffirms Credit Rating
ICRA Limited has reaffirmed the credit rating of ‘ICRA AA+/ Stable’ for PNB Housing Finance Limited (PNBHFL), indicating a stable outlook for the company. This rating applies to the enhanced long-term bank facilities, as well as existing bank facilities and non-convertible debentures. ICRA has also withdrawn ratings for matured instruments.
Details of Rating Actions
The following rating actions were taken by ICRA:
- Enhanced Long-Term Bank Facilities: Rating of [ICRA]AA+ (Stable), with an increase in the amount from Rs. 5,000.00 crore to Rs. 10,000.00 crore.
- Non-Convertible Debentures: Rating of [ICRA]AA+ (Stable) reaffirmed for Rs. 500.00 crore.
- Matured Instruments: Ratings withdrawn for matured Non-Convertible Debentures (NCDs) and Tier II bonds.
Rationale for the Rating
The rating is underpinned by several factors, including PNBHFL’s established track record in the mortgage finance industry. As of September 30, 2025, the company’s assets under management (AUM) stood at Rs. 83,879 crore, making it one of the largest housing finance companies in India.
The rating also factors in the expectation of continued support from Punjab National Bank (PNB). PNB’s stated intent to remain the company’s sole promoter and provide financial and other forms of support adds strength to the rating.
Financial Position
PNBHFL maintains a healthy capitalisation profile and good asset quality. As of September 30, 2025:
- Net worth: Rs. 17,971 crore
- Capital adequacy ratio (CAR): 29.8%
- Managed gearing: 3.9 times
- Gross stage 3 assets (GS3): 1.0%
About PNB Housing Finance Limited
PNB Housing Finance Limited (PNBHFL) was incorporated in 1988. As of September 30, 2025, PNB holds a 28% stake in the company. The company offers home loans, loan against property, and construction finance.
Source: BSE
