India Ratings has assigned an ‘IND AAA’/Stable rating to additional bank loan facilities of PNB Housing Finance (PNBHF). The rating affirmation reflects PNBHF’s position among India’s top housing financiers, improved profitability, asset quality, and granular loan book. India Ratings expects continued support from Punjab National Bank (PNB) as per bank guidelines, with PNB maintaining its stake and sharing the brand name. Tangible net worth reached INR178.6 billion in 1HFY26.
New Ratings Assigned
India Ratings and Research has assigned a rating of ‘IND AAA’ (Stable) to additional bank facilities for PNB Housing Finance. This rating reflects the agency’s view on PNBHF’s financial standing and operational performance, as well as expectations for continued backing from its parent company.
Key Rating Drivers
The rating is underpinned by several key factors:
- Expectation of timely liquidity and equity support from Punjab National Bank (PNB).
- PNBHF’s established position as a leading housing finance company in India.
- Consistent improvement in profitability and asset quality.
- Granularisation of the loan book.
- Ability to raise funding at competitive rates and maintain adequate liquidity.
Financial Performance Highlights
PNBHF has demonstrated consistent improvement in profitability, with Return on Assets (RoA) rising to 2.76% in 1HFY26. The company’s tangible net worth reached INR178.6 billion in 1HFY26. Leverage (debt/tangible equity) remained stable at 3.6x in 1HFY26.
Asset Quality Improvement
There has been a significant reduction in PNBHF’s credit costs in 1HFY26 to negative 0.44% due to a recovery from the written-off pool and a reduction in the overall headline gross non-performing assets (NPAs) to 1.04%.
Details of Ratings
The following ratings have been assigned and affirmed:
- Bank Loan Facilities: INR 65 billion – IND AAA/Stable (Affirmed)
- Bank Loan Facilities: INR 50 billion – IND AAA/Stable (Assigned)
- Non-Convertible Debentures: INR 49.55 billion – IND AAA/Stable (Affirmed)
Outstanding NCD Details
Several Non-Convertible Debentures (NCDs) have been affirmed with an IND AAA rating as of December 29, 2025. These NCDs have various maturity dates ranging from January 2026 to June 2028 and coupon rates from 7.28% to 8.42%.
Source: BSE
