PNB Housing: Steady Growth and Quality Vision

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Sales Growth: Guided 18% for current year (FY26), with 18%-19% annual growth targeted. Retail book targets include Rs. 9,500 crores by end of current period, Rs. 15,000 crores by March 2027, and a Rs. 1 lakh crore overall retail book by March 2027.
  • Net Interest Margin (NIM): Full-year guidance maintained between 3.65% and 3.7%. Expected to start inching up next year.
  • Asset Quality: Committed to maintaining current asset quality; Gross NPA at 1.06% (June 2025), Net NPA at 0.69%. Confident of closing the year with negative credit cost.
  • Strategic Focus: Continued emphasis on retail lending expansion, affordable housing, and emerging business segments.

PNB Housing Finance Limited recently held an investor call addressing the leadership transition following the MD & CEO's resignation. Despite this change, the company reiterated its steadfast commitment to its strategic direction, ensuring continued growth and stability. The management's commentary provided clear forward-looking guidance on key financial metrics and operational priorities, aiming to reassure stakeholders about its robust future.

Sustaining Growth and Expanding Reach

PNB Housing Finance outlined a consistent growth trajectory, maintaining its strategic focus on the retail lending sector. The company remains committed to expanding its loan book, particularly within the affordable housing and emerging business segments. Management stated,

"We have guided 18% growth on book...we are talking about 18%-19% growth."

The company targets a substantial increase in its retail book, aiming for approximately Rs. 1 lakh crore by March 2027. The strategy emphasizes increasing market share in higher-yielding segments to ensure sustainable expansion and robust performance.

Robust Financials and Asset Quality Commitment

PNB Housing Finance provided a reassuring outlook on its financial health and asset quality. The company confidently projected its Net Interest Margin (NIM) would remain stable, with CFO Vinay Gupta stating,

"full year guidance will be between 3.65% to 3.7%."

PNB Housing affirmed strong asset quality, reporting Gross NPA of 1.06% and Net NPA of 0.69% as of June 2025. Management expressed confidence in achieving a "negative credit cost" for the year, supported by high collection efficiency. Nilesh Vikamsey reiterated,

"We remain committed to our stated guidance on credit costs and NPA."

The board stressed that asset quality remains unaffected by recent management changes, citing robust internal controls.

PNB Housing Finance's investor call highlighted the company's commitment to its established strategy despite recent leadership changes. The management provided clear guidance on maintaining strong growth, stable margins, and superior asset quality, particularly within the retail and affordable housing segments. With robust financial indicators and a dedicated team, PNB Housing aims to deliver sustainable value, reaffirming its preparedness for the next phase of growth.

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