PNB Housing Confident for Sustained Growth

Ashwin Thakker

— 2 min read

Key Facts:

  • Sales Growth: PNB Housing Finance targets 18% retail loan book growth for the current financial year (FY26), aiming for a book size of Rs. 15,000 crores and an overall retail book of Rs. 1 lakh crore by March 2027.
  • Net Interest Margin (NIM): The company maintains its full-year NIM guidance at 3.65% to 3.7%, anticipating margins to increase in the next financial year.
  • Asset Quality: Management expects to close the current year with a negative credit cost, building on strong current asset quality metrics including a Gross NPA of 1.06% and Net NPA of 0.69% as of June 2025.

PNB Housing Finance remains committed to its growth trajectory and financial health, as outlined in its recent investor call. Despite leadership changes, the company assures stakeholders of its robust strategic foundation and ability to deliver sustainable value. This analysis delves into the key aspects of its forward-looking guidance on sales, margins, and asset quality, highlighting the company's preparedness for its next phase of expansion and stability.

Clear Growth Trajectory

PNB Housing Finance has outlined a clear path for expansion, targeting an 18% growth in its retail loan book for the current financial year (FY26). This aligns with their long-term vision, aiming for the retail loan book to reach approximately Rs. 15,000 crores by March 2027, and an overall retail book of Rs. 1 lakh crore by the same period. This strategic growth is primarily driven by focused penetration into the Affordable housing and Emerging business segments, which offer higher yield opportunities. The company confirms this strategy is deeply embedded across all organizational levels, ensuring continuity.

“We have guided 18% growth on book… This year the guidance is 18%.”

Management expressed confidence that their robust fundamentals and a resilient team will enable them to meet these ambitious targets, reinforcing stability.

Optimized Margins and Strong Asset Quality

PNB Housing Finance remains focused on profitability through disciplined margin management. The company maintains its Net Interest Margin (NIM) guidance at 3.65% to 3.7% for the full financial year, anticipating margins to begin rising next year. This reflects ongoing efforts in operational efficiency. Crucially, the company reaffirms its commitment to superior asset quality, expecting to close the current year with a negative credit cost. This confidence is bolstered by robust collection mechanisms and low Non-Performing Assets, with Gross NPA at 1.06% and Net NPA at 0.69% as of June 2025. Early warning signals indicate no stress, ensuring a stable financial foundation moving forward.

“So, it will remain range bound as we mentioned full year guidance will be between 3.65% to 3.7%.”

PNB Housing Finance's recent earnings call underlines a clear and consistent forward-looking strategy. With ambitious yet achievable growth targets, stable margin outlook, and a firm commitment to asset quality, the company projects a path of sustainable expansion. The management’s emphasis on strong fundamentals and strategic continuity aims to instill confidence in its ability to deliver long-term value to shareholders, navigating market dynamics with preparedness and resilience.

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