CRISIL has upgraded PNB Housing Finance’s rating to AA+/Stable for its non-convertible debentures and enhanced the rated amount for bank debt to INR 9,000 Crore. This rating reflects the company’s robust capitalization, established market position, and comfortable earnings profile. CRISIL has also reaffirmed its ‘Crisil AA+/Stable/Crisil A1+’ ratings on existing debt instruments and bank facilities. The upgrade indicates strong financial health and growth prospects for PNB Housing Finance.
Rating Upgrade Details
CRISIL Ratings has assigned a ‘Crisil AA+/ Stable’ rating to PNB Housing Finance’s non-convertible debentures, amounting to INR 3,410 Crore. Furthermore, the rating agency enhanced the rated amount on total bank loan facilities from INR 4,000 Crore to INR 9,000 Crore. It also reaffirmed its ‘Crisil AA+/Stable/Crisil A1+’ ratings on the existing debt instruments and bank facilities, as of October 28, 2025.
Factors Driving the Rating
The rating upgrade considers the company’s robust capitalization metrics and its well-established position in the housing finance sector. The comfortable earnings profile further supports the company’s overall credit strength. Additionally, the rating acknowledges the brand-sharing benefits derived from its parent company, Punjab National Bank (PNB). These strengths are, however, partially offset by intense competition and the need to sustain comfortable asset quality.
Capitalization and Market Position
PNB Housing Finance’s capitalization metrics remain strong, with a net worth of Rs 17,498 crore as of June 30, 2025. The Tier-I and overall capital adequacy ratio (CAR) stood healthy at 29.0% and 29.7%, respectively, providing adequate headroom for future growth. The company’s assets under management (AUM) stood at Rs 82,100 crore as of June 30, 2025, reflecting its established market position.
Asset Quality and Focus Areas
The company is strategically focusing on building a strong retail franchise, with retail loans comprising approximately 99% of the own loan book as of June 30, 2025. The gross stage III assets have declined to 1.06% (Rs 825 crore) as of June 30, 2025, indicating improved asset quality. Furthermore, the company is focusing on affordable housing and emerging market loans to drive growth.
Liquidity and Outlook
PNB Housing’s asset-liability maturity profile is strong, with unencumbered liquidity of Rs 6,569 crore as of August 31, 2025. The outlook is stable, reflecting CRISIL’s belief that the company will maintain strong capitalization metrics and sustain a comfortable earnings profile while scaling up operations.
Source: BSE
