India Ratings has upgraded PNB Housing Finance’s (PNBHF) credit ratings to ‘IND AAA/Stable’ from ‘IND AA+/Stable’, citing expectations of timely liquidity and equity support from Punjab National Bank (PNB). The upgrade applies to PNBHF’s non-convertible debentures (NCDs) and bank loans. The rating reflects PNBHF’s strong position in the housing finance sector and consistent improvements in profitability and asset quality. A rating has also been assigned to additional NCDs. The company has an AUM of INR839 billion as of September 30, 2025.
Credit Rating Upgrade
PNB Housing Finance (PNBHF) has received an upgraded credit rating from India Ratings, moving from ‘IND AA+/Stable’ to ‘IND AAA/Stable’. This upgrade applies to the company’s non-convertible debentures (NCDs) and bank loan facilities. The rating agency has also assigned an ‘IND AAA/Stable’ rating to additional NCDs.
Rationale for Upgrade
The upgrade reflects India Ratings’ expectation of timely liquidity and equity support from Punjab National Bank (PNB), PNBHF’s parent company. India Ratings also acknowledged PNBHF’s position as a top housing financier in India, its consistent improvement in profitability and asset quality, and its success in granularizing its loan book.
Key Highlights
Here are some key takeaways from the announcement:
- Bank Loan Facilities: Upgraded to IND AAA/Stable (Size: INR 65 billion)
- Non-Convertible Debentures: Upgraded to IND AAA/Stable (Size: INR 34.55 billion)
- New Non-Convertible Debentures: Assigned IND AAA/Stable (Size: INR 15 billion)
Company Performance
PNBHF has demonstrated consistent improvement in profitability, with return on assets (ROA) rising to 2.76% in 1HFY26. The company’s asset quality has also improved, with headline gross non-performing assets (NPAs) reduced to 1.04%. The company’s tangible net worth reached INR178.6 billion in 1HFY26.
Asset and Liability Management
As of September 30, 2025, PNBHF’s asset-liability profile had a cumulative negative gap of INR32 billion in the six months to one-year bucket. The company’s total liquidity (including liquid investments and unutilized bank lines) stood at INR122.2 billion.
Source: BSE