PNB Housing Finance Achieves ‘IND AAA’ Credit Rating Upgrade
Filing Summary
PNB Housing Finance Ltd has received a credit rating upgrade from India Ratings, moving from ‘IND AA+’ to ‘IND AAA’ with a Stable Outlook. This upgrade applies to the company’s Non-Convertible Debentures (NCDs) and Bank Loans. As of September 30, 2025, PNB Housing’s Retail Loan Asset increased by 17% year-over-year to ₹79,439 crores, representing 99.6% of the Total Loan Asset. The Total Loan Asset was ₹79,771 crores. The company’s Gross NPA was 1.04%, and Return on Asset was 2.65% in H1 FY26. The Capital Risk Adequacy Ratio stood at 29.80%.
PNB Housing Finance Ltd has announced a credit rating upgrade from India Ratings, elevating its rating from ‘IND AA+’ to ‘IND AAA’ with a Stable Outlook. This upgrade pertains to the company’s Non-Convertible Debentures (NCDs) and Bank Loans. The rating upgrade reflects the company’s track record across key business parameters, consistent improvement in profitability, asset quality, and the granularization of its loan book. The strategic stake held by Punjab National Bank in PNB Housing Finance is also acknowledged in the rating rationale.
As of September 30, 2025, PNB Housing Finance reported a Retail Loan Asset growth of 17% year-over-year, reaching ₹79,439 crores. This segment constitutes 99.6% of the company’s Total Loan Asset, which stood at ₹79,771 crores. The company’s Gross Non-Performing Assets (NPA) were recorded at 1.04%, while the Return on Asset was 2.65% in the first half of FY26, on an annualized basis. The Capital Risk Adequacy Ratio was reported at 29.80%, and the cost of borrowing was 7.74% during the same period.
The scope of PNB Housing Finance’s operations includes providing housing loans to individuals and corporate bodies for various purposes such as purchase, construction, repair, and upgradation of houses. The company also offers loans for commercial space, loans against property, and loans for the purchase of residential plots. The company’s strategic focus on reducing concentration risks through the granularization of its loan book is a key aspect of its operational strategy.
The credit rating upgrade follows a previous enhancement from ‘IND AA’ to ‘IND AA+’ in the third quarter of FY24. This earlier upgrade was attributed to a robust capital buffer resulting from a capital infusion in February 2023, along with improvements in asset quality. The successive upgrades highlight PNB Housing Finance’s consistent performance and resilience across business cycles.
PNB Housing Finance Limited is a registered housing finance company with the National Housing Bank (NHB). Incorporated under the Companies Act, 1956, the company commenced operations on November 11, 1988. It is promoted by Punjab National Bank (PNB) and has been publicly listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) since November 7, 2016. The company raised additional capital through a Rights Issue in May 2023. With over three decades of experience in housing finance, PNB Housing Finance operates a robust network of branches across India, facilitating seamless access to financial services for its customers.