Wire · AZ Weekly Post
PNB Housing Finance reported a 33% year-on-year increase in net profit for the September quarter, supported by higher net interest income, improved spreads and strong growth in retail lending. The housing finance company also recorded its highest-ever quarterly retail disbursements , while asset quality continued to strengthen. Net profit rose to ₹627 crore in Q2 FY27 from ₹472 crore in the corresponding quarter last year.
Net interest income (NII) increased 16.3% to ₹861.2 crore from ₹740.6 crore. Shares of PNB Housing Finance closed 2.75% higher at ₹1,120 on the BSE ahead of the earnings announcement. Record retail disbursements drive loan growth Total disbursements rose 60% year-on-year to ₹9,609 crore in Q2 FY27.
Retail disbursements reached a record ₹9,250 crore , up 54% from a year earlier and 59% sequentially. Corporate disbursements stood at ₹360 crore. Assets under management (AUM) grew 17% year-on-year to ₹98,210 crore as of September 30, 2026.
Loan assets increased 19% to ₹95,079 crore, with retail loan assets also growing 19% to ₹94,391 crore. The affordable housing and emerging markets segments remained key growth drivers, expanding 45% and 22%, respectively, from a year earlier. Together, they accounted for 41% of the retail loan asset portfolio.
Spreads widen, margins improve PNB Housing Finance reported an improvement in its lending spreads and margins during the quarter. The spread widened by 31 basis points sequentially to 2.43% in Q2 FY27. Yield on loans increased by 26 basis points quarter-on-quarter to 9.74%, while the cost of borrowing eased by 5 basis points to 7.31%.
Net interest margin (NIM) expanded by 17 basis points sequentially to 3.67%. These improvements supported profitability as the company continued to expand its retail lending business. Asset quality strengthens Asset quality improved further, with the gross non-performing asset (GNPA) ratio declining to 0.91% as of September 30, 2026.
The company r ecovered ₹75 crore during the quarter from its written-off loan pool , contributing to a negative credit cost of 19 basis points. We recorded strong growth in loan assets and achieved our highest-ever retail disbursements, underscoring the strength of our franchise and customer proposition. At the same time, asset quality continued to improve, supported by strong collection performance and sustained recovery efforts AJAI SHUKLA, MD AND CEO OF PNB HOUSING FINANCE He added that improved spreads, stable margins and efficient cost management strengthened profitability during the quarter.
The company will continue to focus on expanding its retail footprint, particularly in the affordable and emerging markets segments, while maintaining prudent risk management and pursuing sustainable growth in the second half of FY27. Tags
Source: CNBC TV18
