PNB Housing Finance shares in focus ahead of Q3 results; five things you need to know

Promoted by the country’s second-largest state-owned lender, Punjab National Bank (PNB), the company is engaged in the business of providing loans for the purchase, construction, repairs, and renovations of housing and commercial properties.

• The company reported a 23% year-on-year rise in net profit for the September quarter of the current fiscal year (Q2 FY25), reaching ₹470 crore. The improvement in profit was attributed to better asset quality, with the gross non-performing assets (GNPA) ratio declining to 1.24%, down from 1.78% a year ago and 1.35% in the previous quarter.

• The company’s net interest income (NII) showed modest growth, up 1.2% year-on-year to ₹669 crore. Quarterly, NII rose 2.7%, although the net interest margin (NIM) slipped to 3.68% from 3.95% in the year-ago period, suggesting some margin pressure, as per a report by CNBC-TV18. Its net interest margin (NIM) for the September quarter stood at 3.68%, reflecting a slight improvement from 3.65% in the previous quarter.

• Total income for the quarter increased 5.7% to ₹1,869 crore, compared to ₹1,768 crore in the same period last year.

• In December 2024, PNB Housing Finance said it aimed to expand its loan book size to ₹5,000 crore by the end of the current financial year (FY25), with a focus on the affordable segment. The mortgage lender closed the loan book under the affordable segment called 'Roshini' at ₹3,000 crore at the end of the second quarter of FY'25.

"We hope to expand our loan book under the affordable housing segment to ₹5,000 crore by this year-end to touch ₹15,000 crore by March 2027," PNB Housing Finance MD and CEO Girish Kousgi told reporters. The loan growth will be helped by the implementation of Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY 2) and branch expansion.

Kousgi also said the housing finance company plans to set up a new vertical for 'Loan Against Property' beginning next financial year.

• To fund loan growth of 17%, he said, the housing finance company plans to raise USD 100-125 million through external commercial borrowings (ECBs) this fiscal year. The board has already approved raising USD 125 million through ECBs.

PNB Housing Finance stock performance

Shares of PNB Housing Finance have gained nearly 7% in the past 12 months.