PNB Housing Finance, a registered housing finance company with the National Housing Bank (NHB), announced its June quarter results on July 21, reporting a net profit of ₹534 crore, marking a 23% YoY, helped by steady home loan demand.

The company’s retail loan asset portfolio grew 18% YoY to ₹76,923 crore, with the affordable and emerging markets segments contributing 37% to the retail book.

Within retail, affordable housing loan asset grew by a stellar 143% YoY to ₹5,744 crore, emerging markets loan asset grew by 20% YoY to ₹22,701 crore, and the prime segment grew by 10% YoY to ₹48,478 crore. While the company’s asset under management (AUM) grew by 13% YoY and 2% QoQ to ₹82,100 crore as of 30th June 2025.

Its net interest income rose by 17% YoY and 4% QoQ to ₹760 crore, while the net interest margin stood at 3.74% in Q1FY26, compared to 3.75% in Q4FY25 and 3.65% in Q1FY25.

Gross margin, net of acquisition cost, came in at 4.06% during the quarter. Its pre-provision operating profit increased by 17% YoY, though it declined 2% QoQ to ₹632 crore.

Asset quality continued to improve, with gross non-performing assets (GNPA) at 1.06%, compared to 1.35% a year earlier and 1.08% as of March 31, 2025. Retail GNPA stood at 1.07% (vs. 1.39% in June 2024 and 1.09% in March 2025), while corporate GNPA remained at nil across all three periods.

Net NPA was reported at 0.69% as of June 30, 2025, with Retail NNPA at 0.70%. The company achieved a return on assets (RoA) of 2.57% for Q1FY26 (annualized), slightly higher than the 2.55% reported for FY25. It also recovered ₹57 crore from the total written-off pool during the quarter.

The capital to risk-weighted assets ratio (CRAR) stood at 29.68% as of June 30, 2025, with Tier I capital at 28.96% and Tier II at 0.72%, compared to 29.50% a year ago, with Tier I at 28.43% and Tier II at 1.07%.

FY26 outlook remains on track, says management

Commenting on the performance, Mr. Girish Kousgi, Managing Director & CEO, said, “The company’s focus on high-yielding business led to 30% YoY disbursement growth in the affordable and emerging markets segment during the quarter, contributing 50% in the retail disbursement.”

“Our asset quality continues to improve with GNPA of 1.06% as of June 30, 2025. While maintaining a balance between growth and profitability, our ROA stood at 2.57% annualized for FY 25-26. As we look forward, we are confident of our ability to achieve our stated guidance for the fiscal year,” he further added.

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