PNB Housing Finance upgraded to 'IND AAA/Stable' by India Ratings

PNB Housing Finance Limited (PNBHF) announced that India Ratings and Research Private Limited (Ind-Ra) has upgraded its credit rating for Non-Convertible Debentures (NCDs) and Bank Loans to 'IND AAA/Stable' from 'IND AA+/Stable', with a stable outlook. This upgrade also includes an assignment of 'IND AAA/Stable' for additional NCDs.

The upgrade is driven by Ind-Ra's expectation of timely liquidity and equity support from Punjab National Bank (PNB), PNB's continued stake in PNBHF, and the sharing of PNB's brand name. The total value of upgraded bank loan facilities is INR65 billion, with existing NCDs totaling INR34.55 billion also upgraded. Additionally, INR15 billion in new NCDs were assigned the 'IND AAA/Stable' rating.

Ind-Ra highlighted PNBHF's strong position among India's top housing financiers, improved profitability with a return on assets (ROA) rising to 2.76% in 1HFY26, robust capital buffers with tangible net worth reaching INR178.6 billion in 1HFY26, and a significant reduction in gross non-performing assets (NPAs) to 1.04% in 1HFY26. The company also maintains a diversified resource profile and adequate liquidity.