PNB Housing Finance reaffirms strong credit ratings

PNB Housing Finance Limited (PNBHFL) has reaffirmed its credit ratings for debt instruments and bank facilities at 'CARE AA+; Stable', with short-term bank facilities and Commercial Paper reaffirmed at 'CARE A1+'. This reaffirmation is based on PNBHFL's improved profitability, supported by negative credit cost, comfortable capitalisation with a gearing of 3.7x as of June 30, 2025, and a diversified borrowing profile. The company recorded a net profit of ₹1,936 crore in FY25, translating into a Return on Total Assets (RoTA) of 2.5%.

The ratings continue to reflect PNBHFL's strong market position as the third-largest housing finance company in India, with Assets Under Management (AUM) of ₹82,100 crore as of June 30, 2025. PNBHFL benefits from its brand linkage with promotor Punjab National Bank (PNB), which holds a 28.1% stake as of June 30, 2025. Liquidity remains strong, with a liquidity coverage ratio (LCR) of 229% as of June 30, 2025.

The company's asset quality improved, with gross non-performing assets (GNPA) decreasing from 8.1% on March 31, 2022, to 1.06% on June 30, 2025. PNBHFL's affordable housing segment, "Roshni," launched in FY23, has grown to ₹5,744 crore as of June 30, 2025, supported by a network of 200 branches.