PNB Housing Finance has received a credit rating upgrade from India Ratings on its Non-Convertible Debentures and Bank Loans, moving from ‘IND AA+’ to ‘IND AAA’ with a Stable Outlook. The upgrade reflects the company’s consistent performance, improved profitability, and asset quality, as well as the strategic support from Punjab National Bank. As of September 30, 2025, the Retail Loan Asset grew by 17% YoY.
Significant Rating Upgrade
PNB Housing Finance announced that India Ratings has upgraded its credit rating on the company’s Non-Convertible Debentures (NCDs) and Bank Loans to ‘IND AAA’ from ‘IND AA+’ with a Stable Outlook. This upgrade signals the company’s strong financial standing and growth trajectory.
Key Factors Driving the Upgrade
The rating rationale highlights PNB Housing Finance’s consistent performance across key business parameters, along with its consistent improvement in profitability and asset quality. The granularization of the loan book, reducing concentration risks, and the strategic importance of Punjab National Bank’s stake were also noted as key factors.
Executive Commentary
Mr. Jatul Anand, Executive Director, PNB Housing Finance, stated that the upgrade to ‘IND AAA’ marks a significant milestone, reaffirming the strength of the company’s business fundamentals, strategic direction, and prudent risk management practices.
Financial Highlights
As of September 30, 2025, PNB Housing Finance reported the following:
- Retail Loan Asset growth of 17% YoY, reaching ₹79,439 crores, and comprising 99.6% of the Total Loan Asset.
- Total Loan Asset stood at ₹79,771 crores.
- Gross NPA at 1.04%.
- Return on Asset at 2.65% in H1 FY26 (Annualized).
- Capital Risk Adequacy Ratio of 29.80%.
- Cost of borrowing at 7.74% in H1 FY26.
Source: BSE