PNB Housing Finance

“With higher incremental yield vs book yield and rising interest rate scenario, we feel that spread and NIM should further improve from hereon.”

“As a result, we expect the overall impact on NIMs to remain broadly neutral to positive.”

“FY'28 next year, I think maybe we are working on the strategy of FY28 in Q3, but the idea is not to degrow.”

“But currently we are maintaining the guidance. But, I'm pretty sure that, it currently is 19%, so it should improve.”

“Within retail portfolio, the affordable and emerging markets segment continued to be our key growth engines, representing YoY book growth of 45% and 22% respectively, and together contributing 41% of overall retail portfolio.”

“At segment level, the affordable business witnessed a strong revival following the strategic initiative undertaken over the past few quarter, with disbursal growth of 40% YoY to INR1,149 crores.”

“The emerging market business delivered another strong quarter with disbursement growing 36% YoY to INR 2,882 crores.”

“Our prime business continued its steady momentum with disbursement reaching INR4,380 crores, up by 44% YoY.”

“Corporate disbursement stood at INR 360 crores for Q2 FY 27 versus INR 215 crores in Q1 FY27.”

“Now the scenario has changed, but we have not seen any impact as of now by increase of 25 bps repo. The momentum is there.”

“Honestly speaking, we don't want to compete much where the nationalized banks are are present because they are more into salaried and the prime salaried.”

“First of all if you see in general, Q3 and Q4 are better months than the Q2 month because these are the festive months when business starts shaping up.”

“ICRA expects affordable housing finance companies to deliver AUM growth of 19%-21% in FY27 supported by robust demand, expanding distribution reach, and the significant opportunity presented by India's underpenetrated housing finance market.”

“The recent 25 bps reported hike by RBI and clear policy guidance reinforce confidence in the housing finance sector's medium-term prospects.”

“Coming to margins, our spread increased by 31 bps sequentially to 2.43%. Excluding one-off spread would be 12 bps higher, that is 2.24%.”

“NIM improved by 17 bps sequentially to 3.67%. Excluding one-off, NIM would be flat sequentially around 3.49%.”

“Our portfolio yield improved to 9.74% in Q2 from 9.48% in Q1 FY27.”

“Incremental yields have also improved by 18 basis points to 9.64%.”

“Operating expenses increased by 20% YoY to INR 260 crores in Q2 FY27 from INR 217 crores in Q2 of FY26, largely in line with the growth in business volumes and driven primarily by investments in manpower addition with the affordable vertical.”

“We are delighted to share that CRISIL has upgraded our credit rating to AAA with a stable outlook.”

“But it may translate in phased manner, may not be immediately.”

“Cost of borrowing also improved by 5 bps to 7.31% in Q2 FY27. The incremental cost of borrowing also improved by 15 bps to 7.26%.”

“Better liquidity position in July, incremental borrowing through NHB and IRS deals done on fixed-rate deals led to lower cost of borrowing in Q2 FY27.”

“Our capital position remains strong with a capital adequacy ratio of 27.03% and Tier 1 capital ratio of 26.62%.”

“disbursed INR 107 crores under Emerging Developer Finance in H1 FY27 and INR 241 crores of affordable business from selected Prime and Emerging branches.”

“As announced in Q1 FY27, we launched our Micro Housing business during Q2 FY27 and have already disbursed INR 71 crores under this initiative.”

“During Q2 FY27, we recovered INR 75 crores from the written-off pool, resulting in a negative credit cost of 19 bps.”

“Adjusting for this one-off item, yield, spread and NIM would have stood at 9.56%, 2.24%, and 3.49% respectively.”

“There were certain overdue charges and overdue interest which got collected at the time of closure. We account for it only on the receipt basis.”

“that also had some one-time payment of GST on a prior year's royalty to PNB, which is paid this time after the AGM approval. So it is more like a one-off.”

“See, this time again, as we said, there is some one-offs in the overall interest income. Which has led to higher ROA. The normalized ROA is 2.4, which is in line with Q1.”

“We have a corporate pool of around INR650-odd crores, which are basically the two accounts which we have declare fraud, which we are now pursuing for recovery.”

“If I talk about us, I think we are exploring opportunities, maybe more opportunities if we can source more business from the market and have an opportunity of some DA out also to get the some upfront income.”

“Because we have enough cushion in terms of PBC norms. So we will ensure that our principal business criteria norms are within reach.”

“Not a significant jump. While 90 plus remains stable, this is also like between 25 to 40 basis points. So we will further deep dive and see if there is anything to work.”

“That is why the ratio is changing. Actually, it is a home loan only, but since regulation says that more than 60%.”

“This translated to an overall loan book of INR 95,079 crores as on 30th September '26, representing growth of 19% YoY.”

“On profitability front, Profit After Tax for the quarter grew by 6% YoY to INR 617 crores, translating into a ROA of 2.53% and ROE of 12.33%.”

“So we will have some room and buffers, to do, DA sell-downs. So that we will start evaluating now from Q3, and we'll start, you know, doing some of the deals which will help in terms of the overall NIM as well as the ROE.”

“Overall disbursement grew 60% YoY to INR 9,609 crores.”

“Retail disbursements reached an all-time high of INR 9,250 crores, registering a growth of 54% YoY.”