PNB Housing Finance Posts Record Retail Disbursements of 9,250 Crore Rupees in Second Quarter
Key Facts
PNB Housing Finance reported a 6% year-on-year rise in consolidated profit after tax to 617 crore rupees in the second quarter of fiscal 2027, from 582 crore rupees in the same period a year earlier. The results were for the quarter ended September 30, 2026, when total disbursements grew 60% to 9,609 crore rupees from 5,995 crore rupees. Retail disbursements reached a record 9,250 crore rupees, up 54% year on year and 59% from the first quarter. The figure includes residential and non-residential retail products, not only individual housing loans. The numbers show rapid expansion in activity, while profit growth was slower than disbursement growth during the period.
Net interest income, the difference between interest collected and paid, rose 15% to 878 crore rupees in the second quarter, from 765 crore rupees a year earlier. Meanwhile, the cost of funds increased 12% year on year to 1,415 crore rupees. Net interest margin was 3.67%, up 17 basis points from 3.50% in the first quarter, but unchanged year on year. The spread between asset yields and the cost of funds also widened 31 basis points quarter on quarter to 2.43%. The company’s borrowing cost fell 5 basis points from the previous quarter to 7.31%, while its loan yield rose 26 basis points to 9.74%.
Assets under management stood at 98,210 crore rupees on September 30, up 17% from a year earlier, while the total loan book reached 95,079 crore rupees, up 19%. Retail loans accounted for 94,391 crore rupees of loan assets, a 19% annual increase. The affordable housing segment grew 45% year on year, while emerging market loans rose 22%. Together, the two segments contributed 44% of retail disbursements during the quarter and represented 41% of the retail loan book. Managing Director and Chief Executive Ajay Shukla said the company’s focus on granular retail expansion, particularly in these two segments, had helped strengthen its position while maintaining risk management discipline.
Gross non-performing loans improved to 0.91% in the second quarter from 0.95% in the first quarter, according to the company’s presentation. PNB Housing Finance recovered 75 crore rupees from its written-off loan portfolio during the quarter. The improvement in the ratio came alongside loan book growth, while the company cited risk management in discussing its retail expansion. Its distribution network stood at 404 branches across India on September 30, 2026. The capital adequacy ratio was 27.03% on the same date, including 26.62% for Tier I. These indicators provide a picture of asset quality, the operating base and capital at the end of the reporting period.
In the first half of fiscal 2027, consolidated profit rose 5% to 1,174 crore rupees from 1,115 crore rupees in the corresponding half of the previous year. Disbursements during the period increased 42% to 15,638 crore rupees, compared with 10,975 crore rupees. In the second quarter, return on assets was 2.53% versus 2.73% a year earlier, while return on equity was 12.33% versus 13.14%. These indicators show a divergence between the expansion in disbursements and profitability on one hand, and annualized return measures on the other. The company was scheduled to hold an investor conference at 7:30 p.m. India time on October 28, 2026, to discuss results for the quarter and first half ended September 30. Shukla said the company looked to the second half of the fiscal year to continue expanding its retail presence, focusing on long-term housing finance opportunities, customer experience and profitable growth.