Mumbai: PNB Housing Finance Limited has announced that its Board of Directors has approved raising up to ₹5,000 crore through non-convertible debentures (NCDs). The funds will be raised on a private placement basis to strengthen the company’s financial resources and support its lending and expansion plans.
Board Approval for Fundraising
The decision was taken during a recent board meeting. PNB Housing Finance confirmed that the NCDs will be issued in one or more tranches, with or without a green shoe option. The move is aimed at diversifying funding sources while reinforcing the company’s balance sheet for future growth.
Focus on Lending and Expansion
PNB Housing Finance is a registered deposit-taking housing finance company with the National Housing Bank (NHB). Its business model emphasizes retail home loans, catering largely to the organized mass housing segment. In addition, the company offers loans against property and financing for non-residential property purchases and construction.
Strong Q1 FY26 Performance
The fundraising plan follows a robust performance in the first quarter of FY26. The company posted a net profit of ₹534 crore, marking a 23% year-on-year (YoY) increase, though slightly down 3% quarter-on-quarter (QoQ).
Net interest income (NII) rose 17% YoY and 4% QoQ to ₹760 crore. The net interest margin (NIM) stood at 3.74%, marginally lower than the previous quarter’s 3.75% but higher than the 3.65% recorded in the same quarter last year.
Market Response
Following the announcement, PNB Housing Finance’s stock gained 1.21% on the Bombay Stock Exchange (BSE), closing at ₹791.80. The positive market response reflects investor confidence in the company’s financial strategy and growth outlook.
About PNB Housing Finance
PNB Housing Finance Limited, promoted by Punjab National Bank, is among India’s leading housing finance companies. With a focus on retail housing loans and property-based financing, it plays a key role in enabling affordable housing and supporting the real estate ecosystem. Registered with the National Housing Bank, the company continues to strengthen its market position with innovative products and prudent financial management.