PNB Housing Finance reported robust results for the financial year ending March 31, 2026, with profit after tax rising 18% year-on-year to INR 2,291 crore. The company saw a 16% growth in its retail loan book, reaching INR 86,946 crore, supported by a significant rebound in disbursements and improved asset quality. GNPA levels improved to 0.93%, reflecting the company’s focus on high-quality assets and effective recovery strategies.
Annual Performance Highlights
For the fiscal year 2026, PNB Housing Finance demonstrated strong operational and financial resilience. The company achieved a profit after tax of INR 2,291 crore, marking an 18% increase over the previous year. This performance was underpinned by a balanced growth strategy, with the retail loan book expanding to INR 86,946 crore as of March 31, 2026. The board has recommended a dividend of INR 8 per equity share for the year.
Strategic Growth in Key Segments
Disbursements in the final quarter (January–March 2026) surged by 36% year-on-year to INR 9,355 crore. A core focus for the company remains the affordable and emerging market segments, which now account for 40% of the retail loan asset mix, up from 37% in the prior year. Management noted that the company has restarted its corporate loan segment, focusing on high-quality projects primarily in major cities like Mumbai, with a target to maintain this segment at approximately 3% of the overall book in the coming year.
Asset Quality and Operational Efficiency
The company achieved a significant milestone by reducing its Gross NPA to 0.93%. This improvement is attributed to strengthened collection infrastructure and successful resolution efforts. Total recoveries from the written-off pool reached INR 332 crore for the full year, contributing to a negative credit cost. Furthermore, the company has embraced digital transformation, launching the Infinity application to streamline the loan onboarding process, significantly reducing turnaround times and operational costs.
Outlook for FY2027
Looking ahead, PNB Housing Finance has set a positive growth trajectory for FY2027. The company expects its total loan book to exceed INR 1 lakh crore, with retail loan growth projected between 18% and 20%. Management anticipates a Net Interest Margin (NIM) in the range of 3.55% to 3.65% and plans to continue diversifying its funding mix while focusing on productivity improvements across its 393 branches nationwide.
Source: BSE
