The Board of Directors of PNB Housing Finance Limited today approved the Consolidated Unaudited Financial Results for the quarter ended 31st December 2025.
Author: Prashant Agarwal | EQMint | Press release
January 21, 2026, New Delhi: PNB Housing Finance Limited reported a resilient performance for the third quarter and nine months ended December 31, 2025, driven by strong retail loan growth, steady profitability, improving asset quality, and a robust capital position. The consolidated unaudited financial results were approved by the Board of Directors on January 21, 2026.
The results underline the company’s continued strategic shift toward a retail-focused loan book, with a sharp emphasis on the affordable and emerging markets segment, while maintaining prudent risk management and financial discipline.
Strong Retail Loan Growth Anchors Performance
Retail lending continues to be the cornerstone of PNB Housing Finance’s business model. As of December 31, 2025, the retail loan asset grew by 16% year-on-year to ₹81,931 crore, accounting for nearly 99.7% of the company’s total loan asset.
The affordable and emerging markets segment stood out with a 31% year-on-year growth and contributed 39% to the overall retail loan portfolio. Importantly, this segment accounted for around 50% of total retail disbursements during the quarter, reflecting sustained demand and deeper penetration across mass housing segments.
Disbursement Momentum Remains Healthy
During Q3 FY26, total disbursements increased by 16% year-on-year and 4% quarter-on-quarter to ₹6,217 crore. Disbursements in the affordable and emerging markets segment reached ₹2,935 crore, registering an 11% year-on-year growth.
This performance highlights the company’s ability to maintain steady origination volumes despite evolving interest rate and macroeconomic conditions.
Financial Performance Snapshot
Consolidated Financial Results (₹ crore)
| Particulars | Q3 FY26 | Q3 FY25 | Q2 FY26 | 9M FY26 | 9M FY25 |
|---|---|---|---|---|---|
| Net Interest Income | 772 | 696 | 765 | 2,296 | 2,016 |
| Pre-Provision Operating Profit | 628 | 579 | 647 | 1,906 | 1,681 |
| Profit After Tax | 520 | 483 | 581 | 1,635 | 1,385 |
| Operating Expenditure | 240 | 206 | 217 | 673 | 600 |
Net profit for Q3 FY26 stood at ₹520 crore, marking a 7.7% year-on-year increase, though it declined 10.5% sequentially. For the nine-month period ended December 31, 2025, net profit rose 18% year-on-year to ₹1,635 crore.
Pre-provision operating profit grew 13.4% year-on-year to ₹1,906 crore for the nine-month period, supported by higher interest income and controlled cost growth.
Margins, Yield, and Cost Structure
PNB Housing Finance maintained stable margins during the quarter. The yield on loans stood at 9.72% in Q3 FY26, while the cost of borrowing was contained at 7.50%, resulting in a healthy loan spread of 2.22%.
Key Profitability Ratios
| Ratio | Q3 FY26 | Q3 FY25 | 9M FY26 | 9M FY25 |
|---|---|---|---|---|
| Yield on Loans (%) | 9.72 | 9.51 | 9.68 | 9.47 |
| Cost of Borrowing (%) | 7.50 | 7.38 | 7.46 | 7.35 |
| Net Interest Margin (%) | 3.63 | 3.54 | 3.69 | 3.52 |
| Return on Assets (%) | 2.40 | 2.29 | 2.57 | 2.32 |
| Return on Equity (%) | 11.92 | 11.40 | 12.31 | 11.18 |
Operating expenditure increased due to business expansion and compliance-related costs. The company also accounted for an estimated ₹6 crore impact from the new labour code under employee benefit expenses during the quarter.
Asset Quality Continues to Improve
Asset quality metrics showed continued improvement in Q3 FY26. Gross Non-Performing Assets (GNPA) declined to 1.04% as of December 31, 2025, compared with 1.19% in the corresponding period last year. Net NPA also improved to 0.68% from 0.83%.
Asset Quality Indicators
| Particulars | As on Dec 31, 2025 | As on Dec 31, 2024 |
|---|---|---|
| Gross NPA (%) | 1.04 | 1.19 |
| Net NPA (%) | 0.68 | 0.83 |
| Retail GNPA (%) | 1.04 | 1.17 |
| Corporate GNPA (%) | NIL | NIL |
The corporate loan book has been significantly reduced to ₹272 crore, with corporate GNPA reported as nil. Additionally, the company recovered ₹49 crore from the written-off pool during Q3 FY26, further strengthening asset quality.
Business Scale and Loan Book Composition
Business Operations Overview
| Particulars | As on Dec 31, 2025 | As on Dec 31, 2024 |
|---|---|---|
| Loan Assets (₹ crore) | 82,203 | 71,925 |
| Retail Loan Assets (₹ crore) | 81,931 | 70,680 |
| Corporate Loan Assets (₹ crore) | 272 | 1,245 |
| Assets Under Management (₹ crore) | 86,048 | 76,832 |
The data highlights the company’s deliberate shift away from corporate lending toward a predominantly retail-driven portfolio.
Strong Capital Adequacy Provides Growth Headroom
PNB Housing Finance continues to maintain a comfortable capital buffer.
Capital Adequacy Position
| Particulars | As on Dec 31, 2025 |
|---|---|
| CRAR (%) | 29.46 |
| Tier I (%) | 28.92 |
| Tier II (%) | 0.55 |
The strong capital position provides ample headroom to support future growth while safeguarding against potential economic volatility.
Expanding Distribution Network
As of December 31, 2025, the company operated through 358 branches across India.
Branch Network
| Segment | Branches |
|---|---|
| Affordable Housing | 198 |
| Emerging Markets | 85 |
| Prime Housing | 75 |
| Total | 358 |
This diversified network enables PNB Housing Finance to serve a wide borrower base across geographies and income segments.
Management Outlook
Management reiterated its focus on strengthening the retail loan book, particularly in the affordable and emerging markets segment, while maintaining asset quality, margins, and capital adequacy. The continued reduction in corporate exposure and disciplined risk management remain central to the company’s long-term strategy.
About PNB Housing Finance Limited
PNB Housing Finance Limited is promoted by Punjab National Bank and is registered with the National Housing Bank (NHB). Its equity shares are listed on BSE Limited and National Stock Exchange of India Limited.
Conclusion
The Q3 FY26 and 9M FY26 results demonstrate PNB Housing Finance’s ability to deliver steady growth, improve asset quality, and maintain strong capital buffers in a competitive housing finance environment. With its retail-centric strategy and focus on affordable housing, the company remains well positioned for sustainable long-term growth.
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