PNB Housing

PNB Housing Finance delivered a strong Q4 and FY26, with the total loan book reaching INR 87,347 crores as of March 31, 2026. Retail loan book grew by 16% YoY to INR 86,946 crores. Q4 disbursements surged by 36% YoY and 50% QoQ to INR 9,355 crores, driven by robust growth across all segments, including a 59% sequential rebound in Affordable disbursements to INR 1,249 crores. Net Interest Income grew 11% in Q4 FY26 and 13% for the full year FY26.

The company achieved a significant milestone with its GNPA falling below 1% to 0.93% as of March 31, 2026, reflecting strengthened collection infrastructure and resolution efforts. Recoveries remained strong, with INR 24 crores from retail and INR 143 crores from corporate return-off pools in Q4, contributing to a negative credit cost of 45 bps for FY26. Management expects credit cost to remain negative, in the range of 15 to 20 bps, for FY27 due to continued recoveries.

PNB Housing is actively pursuing digital transformation, launching the 'infinity application' for fully digitized, paperless onboarding, which has materially reduced turnaround times and operating costs. AI-enabled solutions are being deployed across the loan processing lifecycle, including for re-KYC, pre-delinquency management, and lead conversion, with digital channels generating nearly 15% of overall leads. Operating expenses grew by 13% YoY to INR 920 crores in FY26, with Opex to ATA at 1.05% for the full year.

The company is strategically focused on affordable and emerging market segments, which now constitute 40% of the retail loan asset, up from 37% last year. Management targets 50% growth in the affordable segment for FY27 and aims for a 50%/50% composition of affordable/emerging within two years. Corporate finance, while re-entered, is expected to remain below 3% of the overall book in FY27, with yields in the 11.5%-12% range, and a long-term target of 8-9% of the overall book in three years.

Net Interest Margin (NIM) improved by 6 bps QoQ to 3.69% in Q4 FY26, despite a 10 bps QoQ reduction in spread to 2.12% due to lower incremental yields and balance transfer pressure. Management believes yields have bottomed out and expects improvement from Q1 FY27, guiding for an FY27 NIM range of 3.55% to 3.65%. Profit after tax for FY26 grew 18% YoY to INR 2,291 crores, resulting in an ROA of 2.66% and ROE of 12.73%.

The company maintains a strong capital position with a Capital Adequacy Ratio (CAR) of 27.26% and Tier 1 capital of 26.89% as of March 31, 2026, providing ample room for growth. The Board of Directors recommended a dividend of INR 8 per equity share for FY26, subject to shareholder approval, reflecting confidence in the company's financial health. The net worth stood at INR 19,219 crores, and book value per share increased to INR 738.

PNB Housing plans to introduce new products like Micro LAP and Micro Housing in Q1 FY27, targeting the 14%-16% segment. This expansion aims to further capitalize on the growing opportunities in affordable housing and improve overall yields. The company also plans to increase productivity of its 393 branches and enhance engagement with distribution partners to drive business volumes, focusing on growth with quality.