PNB Housing Finance Limited on Monday, July 21, reported a 23.2% year-on-year (YoY) surge in net profit at ₹533.5 crore for the first quarter that ended June 30, 2025. In the corresponding quarter of the previous fiscal, the company posted a net profit of ₹432.8 crore.
The company’s revenue from operations increased 14% to ₹2,076 crore against ₹1,823 crore in Q1FY25. The lender’s net interest income (NII) grew 24.2% YoY to ₹688 crore against ₹554 crore. Gross margin, net of acquisition cost, stood at 4.06%.
Gross non-performing assets (GNPA) of PNB Housing Finance stood at 1.06% as on June 30, 2025, showing an improvement from 1.35% a year ago and 1.08% as on March 31, 2025. Retail GNPA declined to 1.07% as of June 30, 2025, compared to 1.39% on June 30, 2024, and 1.09% on March 31, 2025.
The company maintained a clean book in its corporate lending portfolio, with corporate GNPA at nil across all three periods. Net non-performing assets (NNPA) stood at 0.69% as on June 30, 2025, with the retail segment reporting NNPA at 0.70%.
The company also reported recoveries of ₹57 crore from its written-off pool during the quarter. The capital risk adequacy ratio (CRAR) stood at 29.68% as of June 30, 2025, with tier I capital at 28.96%.
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Operating expenditure rose 12% YoY and 2% quarter-on-quarter (QoQ) to ₹216 crore in Q1FY26. Pre-provision operating profit increased 17% over last year but declined 2% sequentially to ₹632 crore. Yield stood at 9.99% during the quarter, marginally lower than 10.03% in Q4FY25 and Q1FY25.
The cost of borrowing declined to 7.76% from 7.84% in the previous quarter and 7.92% a year ago. The spread on loans improved to 2.23% from 2.19% in Q4FY25 and 2.11% in Q1FY25.
The company’s total loan assets rose 16% YoY and 3% QoQ to ₹77,732 crore as of June 30, 2025. Retail loans, which make up the majority of the book, grew 18% YoY and 3% sequentially to ₹76,923 crore. Within this, the affordable and emerging markets segments together accounted for 37% of the total retail loan assets.
The affordable housing segment recorded a massive 143% increase in loan assets to ₹5,744 crore, while the emerging markets segment saw a 20% growth, with loan assets at ₹22,701 crore. The prime segment rose 10% to ₹48,478 crore..
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Retail disbursements grew 14% over last year to ₹4,980 crore during the quarter. The affordable housing and emerging market segments were key contributors, registering 30% and 32% growth, respectively and together making up 50% of the total retail disbursements in Q1FY26.
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On the corporate lending front, the company continued its strategy of reducing exposure, with corporate loans declining 56% to ₹809 crore over last year. Asset under management (AUM) stood at ₹82,100 crore as on June 30, 2025, reflecting a 13% YoY and 2% sequential growth.
The results came after the close of the market hours. Shares of PNB Housing Finance Limited ended at ₹1,087.70, up by ₹5.80 or 0.54%, on the BSE.
