PNB Housing Finance Confirms Stable Outlook

• Sales Outlook: Guided 18% retail book growth for the current year. Affordable book targets Rs. 9,500 crore (implied FY26) and Rs. 15,000 crore by March 2027. Overall retail book aims for Rs. 1 lakh crore by March 2027.
• Margin Outlook: Full-year Net Interest Margin (NIM) guided between 3.65% to 3.7%; margins expected to inch up next year.
• Asset Quality Outlook: Confident of closing the year with negative credit costs. Gross NPA at 1.06% and Net NPA at 0.69% as of June 2025.

PNB Housing Finance Limited recently held an investor call addressing its MD & CEO’s resignation. The company confidently reaffirmed its forward-looking strategy and robust financial guidance. Key points from the call highlight a commitment to strong retail growth, stable margins, and excellent asset quality, assuring stakeholders of business continuity and value creation.

Strategic Growth and Margin Outlook

PNB Housing Finance Limited outlined a clear path for sustained growth, particularly in its retail segments. The company forecasts an 18-19% retail book growth for the current year, having achieved 18.2% last year. A significant focus remains on expanding the Affordable and Emerging housing segments, with the affordable book targeted to reach Rs. 9,500 crore, escalating to Rs. 15,000 crore by March 2027, and the overall retail book aiming for Rs. 1 lakh crore by March 2027. On margins, CFO Vinay Gupta stated:

“full year guidance will be between 3.65% to 3.7%,”

with expectations for margins to inch up next year, reinforcing stability.

Robust Asset Quality and Resilient Leadership

The company remains steadfast in maintaining superior asset quality, a critical pillar of its strategy. PNB Housing Finance reported a Gross NPA of 1.06% and Net NPA of 0.69% as of June 2025, demonstrating strong portfolio health. Management expressed confidence in achieving “negative credit cost” for the year, a testament to robust collection efficiencies exceeding 99%. Despite the MD & CEO's departure, the Board emphasized a seamless transition, highlighting a strong internal leadership pipeline and the appointment of an interim Executive Director. The Board affirmed its commitment to the existing strategy, reassuring investors of continuity and stability.

PNB Housing Finance's recent earnings call reinforced its commitment to a consistent growth trajectory, robust asset quality, and stable margins. Despite recent leadership changes, the company conveyed confidence in its deeply embedded strategy and resilient team. With clear guidance on key financial metrics, PNB Housing Finance Limited appears well-positioned to navigate the market and deliver sustainable value to its stakeholders.