PNB Housing Sets ₹1 Lakh Crore Retail Loan Target by FY27

PNB Housing Finance aims to grow its retail loan book to ₹1 lakh crore by FY27, up from ₹77,732 crore in Q1 FY26. CEO Girish Kousgi said the company expects 18% retail growth in FY26 and plans to disburse ₹22,000–₹23,000 crore during the year.

PNB Affordable Housing at the Core

The company’s focus remains on affordable housing, despite Q1 seeing a slow start due to seasonal factors. The affordable housing loan book grew 143% YoY to ₹5,744 crore. PNB Housing targets ₹9,500 crore in affordable housing loans by December 2025 and ₹15,000 crore by FY27. The share of affordable and emerging market disbursements rose to 50% in Q1, up from 40% in Q4, and the target is 60% for incremental disbursements in FY26.

PNB Profit, Margins, and NIM Outlook

PNB Housing reported ₹534 crore net profit in Q1 FY26, up 23% YoY but down 3% QoQ. Net Interest Income rose 17% to ₹760 crore. The company revised its NIM guidance upward to 3.7% from 3.60–3.65%, benefiting from rate cuts and transmission gains.

Funding Mix and Cost of Borrowing

The cost of borrowing fell to 7.76% in Q1 from 7.84% in Q4, supported by a better funding mix. The company is increasing reliance on deposits, NHB refinance, and NCDs, reducing bank loans to 35% from 39.4% last year. NHB refinance now accounts for 15%, up from 9.1%.

Asset Quality and Recovery Plans

PNB Housing recovered ₹57 crore from written-off assets in Q1 and plans to recover over ₹300 crore this year from both retail and corporate segments. The company maintains a strong capital position, with a capital adequacy ratio of 29.68% as of June 30.

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No Equity Raise, Tech Investments Continue

There are no plans for fresh equity issuance in FY26. Fundraising will continue through debt instruments such as term loans, NCDs, and ECBs. On the tech front, major investments have already been made, and the company is now testing AI in customer service, although it’s still in early stages. Co-lending is not a priority, as the focus remains on building a self-sourced portfolio.

PNB Housing Finance Share Price Movement

As of 1:35 pm IST on July 23, 2025, PNB Housing Finance share price (NSE: PNBHOUSING) was trading at ₹1,056.40, down ₹30.20 or 2.78% for the day. The stock opened at ₹1,086.00 and touched a high of ₹1,086.00 and a low of ₹1,035.00 during the session. The company has a market capitalisation of ₹27,660 crore, a price-to-earnings (P/E) ratio of 13.53, and offers a dividend yield of 0.47%. Its 52-week high is ₹1,202.20, while the 52-week low is ₹741.25. The quarterly dividend amount stands at ₹1.24 per share.

Conclusion

PNB Housing Finance is strongly positioning itself for long-term growth with a focus on affordable housing, improved margins, and a disciplined funding approach. With a robust recovery plan and tech investments underway, the company aims to reach ₹1 lakh crore in retail loans by FY27.

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