PNB Housing Finance Limited stands as India's third-largest housing finance company by loan assets, with over three and a half decades of experience in the housing finance sector. The company operates as a registered housing finance company with the National Housing Bank (NHB) and is promoted by Punjab National Bank, which holds a significant stake in the organization.
PNB Housing Finance was incorporated under the Companies Act 1956 and commenced operations on November 11, 1988. The company's shares are listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). As of May 2025, the company has a market capitalization of ₹27,174 Crore.
PNB Housing Finance has undergone a significant strategic transformation, shifting its focus from corporate lending to retail housing finance. The company has reduced its corporate exposure, invested in digitalization to enhance its internal processes, and created a superior customer journey. The retail segment contributed to 99% of the total loan disbursement in FY24 and 97% of the total AUM in FY24, whereas the corporate segment contributed to 3%.
The company operates through multiple specialized verticals to cater to diverse customer segments. PNB Housing Finance introduced Roshni, a dedicated offering for the affordable housing finance sector, providing specialized services to meet the unique needs of this important and growing market. Additionally, from the beginning of FY25, the company also carved out a separate segment termed emerging markets to cater to tier 2 and 3 cities.
The company's product portfolio is comprehensive, offering housing loans, other home loans, and non-home loans:
* Housing loans include home loan, plot loan, and home construction loan.
* Other home loans include home extension loan, home improvement loan, and non-resident Indians (NRIs) home loan.
* Non-home loans cover commercial property loan, loan against property, lease rental discounting, and loan for real estate developers.
PNB Housing Finance has demonstrated robust financial performance in recent years. For the full year, net profit rose 28.39% to ₹1,936.14 Crore in the year ended March 2025, as against ₹1,508.01 Crore during the previous year ended March 2024. Sales rose 8.73% to ₹7,665.35 Crore in the year ended March 2025, as against ₹7,050.08 Crore during the previous year ended March 2024.
* Net interest income grew by 9.3% YoY to ₹2,750 Crore.
* Net Interest Margin stood at 3.70% in FY25 compared with 3.74% in FY24.
* ROA improved by 35 bps YoY at 2.55% in FY25 (annualized).
* ROE is at 12.19% (annualized) for FY25.
* The board recommended a dividend of ₹5 per equity share for FY25.
The company has maintained strong asset quality metrics. Gross Non-Performing Assets stood at 1.08% as on March 31, 2025, compared with 1.19% as on December 31, 2024, and 1.50% as on March 31, 2024. The company's CRAR (Capital to Risk-weighted Assets Ratio) stood at 29.38% as on March 31, 2025, of which Tier I capital is 28.39% and Tier II is 0.99%, indicating a robust capital position well above regulatory requirements.
PNB Housing Finance is pursuing an aggressive growth strategy focused on expanding its retail footprint and increasing market penetration in affordable and emerging market segments. Loan Assets grew by 16% YoY and 5% QoQ to ₹75,765 Crore as on March 31, 2025. Asset under Management (AUM) grew by 13% YoY and 5% QoQ to ₹80,397 Crore as on March 31, 2025.
The company has achieved significant milestones in its affordable housing segment. PNB Housing Finance announced a significant milestone of ₹5,000 Crore Affordable book as on March 31, 2025. This remarkable achievement is a testimony to their unwavering commitment to empowering individuals and families in their journey towards owning a home.
The company's focused strategy for the affordable segment led to expanding Roshni branches to 160 during the year, up from 82 at the end of FY23. Going forward, the Affordable and Emerging Markets segments are expected to contribute about 40% to 42% of the incremental business.
Looking ahead, PNB Housing Finance has set ambitious targets for growth. PNB Housing Finance aims for a ₹1 trillion retail loan book by FY27, focusing on profitability and affordable housing. The company plans to balance growth across different segments, with Roshni expected to reach ₹15,000 Crore, emerging market book at ₹25,000 Crore, and the prime segment at ₹60,000 Crore out of the ₹1 lakh Crore target.
The company is also expanding its product offerings. PNB Housing Finance will start Loan Against Property (LAP) as a separate segment from April 2025, which is expected to enhance profitability as LAP typically commands higher yields.
PNB Housing Finance presents a compelling investment opportunity in the housing finance sector. While prime loans make up 73% of its loan book, the HFC is diversifying into the emerging and affordable loan segments, which UBS believes are a better fit for PNB Housing given its AA+ credit rating. Analysts exp
