PNB Housing Finance delivered robust financial results for the quarter ended September 2026, with consolidated net profit increasing 6% to ₹617 crore compared to ₹582 crore in the year-ago period. The company's total revenue from operations surged 14% to ₹2,424 crore in Q2 FY27, up from ₹2,131 crore in the corresponding quarter of the previous financial year. Interest income rose to ₹2,289 crore from ₹2,017 crore in Q2 FY26, while net interest income (NII) grew 15% to ₹878 crore in the reporting quarter, up from ₹765 crore in the previous year. The company's assets under management (AUM) grew 17% year-on-year to ₹98,210 crore as of September 30, 2026, demonstrating strong operational performance across multiple revenue streams.
The housing lender achieved exceptional growth in its retail lending operations during Q2FY27. Total disbursements soared 60% year-on-year to ₹9,609 crore, compared with ₹5,995 crore in the September quarter of FY26. Retail disbursements hit an all-time high of ₹9,250 crore, representing a remarkable 54% year-on-year increase and 59% quarter-on-quarter growth from the corresponding quarter last year. This surge in disbursement volumes reflects the company's strong market position and robust demand for housing finance products. The company's pre-provision operating profit increased 15.9% to ₹749.05 crore in the reporting quarter, reflecting the company's ability to grow core lending earnings while managing credit costs effectively, with the result surpassing the market consensus estimate of ₹580 crore.
The housing lender showed significant improvement in asset quality metrics during Q2FY27. Gross non-performing assets (GNPA) ratio improved to 0.91% as of September 30, 2026, compared to 1.04% in Q2 FY26 and 0.95% in Q1 FY27. Asset quality improved sequentially with GNPA contracting by 4 basis points quarter-on-quarter from 0.95% in the previous quarter. Net non-performing assets (NNPA) came in at 0.55%, indicating improved credit quality. The company recorded recoveries of ₹75 crore from the written-off pool during Q2 FY27, contributing to a negative credit cost of -19 basis points for the quarter. The bank wrote back 0.19% of total outstanding loans from provisions in the reporting quarter, substantially lower than 0.53% in the same quarter last year. However, credit cost write-backs were much smaller this quarter compared to the previous year, which limited the overall profit growth despite strong operational performance.
PNB Housing Finance's loan portfolio composition showed some strategic shifts during the quarter. Assets under management increased 17% to ₹98,210 crore on a year-on-year basis, reflecting continued expansion in the company's lending business. However, the share of housing loans within the retail segment reduced to 65.1% in the reporting quarter, down from 73% in the year-ago period, indicating diversification into other retail segments. This change reflects the company's strategy to expand beyond traditional housing finance, with the provision coverage ratio standing at 39.98% providing adequate buffer for potential credit losses. The company recorded robust growth in its loan book and disbursement volumes during the quarter, demonstrating strong operational execution across its diversified portfolio.
The company maintained stable net interest margins despite market pressures, with Net Interest Margin (NIM) at 3.67% on a year-on-year basis, though it improved 17 basis points from 3.50% in the previous quarter. Yield on loans increased to 9.74%, up 26 basis points quarter-on-quarter, while cost of borrowing improved to 7.31%, down 5 basis points sequentially. The improvement in NIM on a sequential basis was supported by better lending spreads and a stable cost of borrowing. The increase in net interest income reflects stronger core lending earnings, with the company's net profit exceeding the market consensus estimate of ₹580 crore and EPS growing 5.9% to ₹23.65 in the reporting quarter.
