New Delhi: PNB Housing Finance Limited reported a 6% year-on-year increase in consolidated net profit to ₹616.55 crore for the second quarter of FY27, ended September 30, 2026. The company had posted a net profit of ₹581.59 crore in the corresponding quarter of the previous financial year.
The quarterly profit exceeded the market consensus estimate of ₹580 crore, supported by higher interest income and continued growth in the company’s loan portfolio.
Total income increased to ₹2,423.95 crore in Q2 FY27, compared with ₹2,130.60 crore in the year-ago period, reflecting an improvement in the company’s overall business performance.
The company’s Board of Directors approved the unaudited financial results on October 28, 2026.
PNB Housing Finance Q2 FY27 Financial Performance
PNB Housing Finance recorded growth in both income and profitability during the September quarter. Interest income rose to ₹2,289 crore from ₹2,017 crore in the corresponding quarter of the previous financial year.
Key financial highlights for Q2 FY27 include:
- Consolidated net profit: ₹616.55 crore, up 6% year-on-year from ₹581.59 crore.
- Total income: ₹2,423.95 crore, compared with ₹2,130.60 crore a year earlier.
- Interest income: ₹2,289 crore, up from ₹2,017 crore in Q2 FY26.
- Net interest income (NII): ₹878 crore, an increase of 15% from ₹765 crore in the year-ago quarter.
- Assets under management (AUM): ₹98,210 crore as of September 30, 2026, up 17% year-on-year.
The results indicate continued expansion in the company’s lending business, supported by higher interest earnings and growth in its loan portfolio.
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Net Interest Income Rises 15% to ₹878 Crore
PNB Housing Finance reported net interest income of ₹878 crore in Q2 FY27, marking a 15% increase from ₹765 crore in the corresponding quarter last year.
Net interest margin (NIM), a key indicator of lending profitability, stood at 3.67%. While the margin remained unchanged year-on-year according to the reported annual comparison, it improved by 17 basis points quarter-on-quarter.
The improvement in NIM on a sequential basis was supported by better lending spreads and a stable cost of borrowing.
Other key lending metrics also recorded sequential improvements:
- Net interest margin (NIM): 3.67%, up 17 basis points quarter-on-quarter.
- Yield on loans: 9.74%, an increase of 26 basis points quarter-on-quarter.
- Cost of borrowing: 7.31%, an improvement of 5 basis points quarter-on-quarter.
The increase in net interest income reflects stronger core lending earnings, although net profit growth remained lower than NII growth during the quarter.
Asset Quality Improves in Q2 FY27
PNB Housing Finance continued to strengthen its asset quality during the September quarter, with a decline in gross non-performing assets (GNPA).
The company’s GNPA ratio improved to 0.91% as of September 30, 2026, compared with 1.04% in Q2 FY26 and 0.95% in Q1 FY27.
The reduction indicates an improvement in the quality of its loan portfolio over both the year-ago and preceding quarters.
Other asset quality indicators included:
- Net non-performing assets (NNPA): 0.55%.
- Provision coverage ratio: 39.98%.
- Recoveries from the written-off pool: ₹75 crore during Q2 FY27.
- Credit cost: -19 basis points for the quarter.
The ₹75 crore recovery from the written-off pool contributed to the negative credit cost reported for the quarter.
Assets Under Management Grow 17% to ₹98,210 Crore
PNB Housing Finance’s assets under management increased 17% year-on-year to ₹98,210 crore as of September 30, 2026.
The growth reflects continued expansion in the company’s housing finance business and demand for its lending products.
The increase in AUM, together with higher interest income and net interest income, highlights the company’s continued business growth. At the same time, the improvement in asset quality provides further context for its quarterly performance.
Balance Sheet and Capital Adequacy Position
PNB Housing Finance reported a consolidated net worth of ₹20,249.19 crore as of September 30, 2026. Its consolidated debt-equity ratio stood at 3.93.
The company’s standalone liquidity and capital adequacy indicators were as follows:
- Liquidity Coverage Ratio (LCR): 155.44%.
- Capital to Risk-Weighted Assets Ratio (CRAR): 27.03%.
The standalone CRAR was reported at 27.03% in the detailed balance sheet metrics, while an earlier summary figure put it at 27.02%. The detailed figure has been used here.
The company’s capital adequacy ratio was lower than the 29.80% recorded at the end of September 2025, indicating a moderation in its capital buffer compared with the previous year.
PNB Housing Finance Q2 FY27 Results: Key Takeaways
PNB Housing Finance’s Q2 FY27 performance reflects growth in profitability, interest earnings and its loan portfolio, alongside an improvement in asset quality.
The key developments during the quarter were:
- Net profit increased 6% year-on-year to ₹616.55 crore.
- Net interest income rose 15% to ₹878 crore.
- Assets under management grew 17% to ₹98,210 crore.
- Gross non-performing assets declined to 0.91%.
- Net interest margin improved sequentially to 3.67%, although it remained unchanged year-on-year.
- The capital adequacy ratio moderated compared with the previous year.
Overall, the results highlight continued expansion in the company’s housing finance business, supported by stronger interest earnings and improved asset quality.
About PNB Housing Finance Limited
PNB Housing Finance Limited is an Indian housing finance company established in 1988 and registered with the National Housing Bank. It provides housing loans and other mortgage-related financial products to individuals and families. The company focuses on home purchases, construction, renovation and other housing finance needs, serving customers through its network across India.
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