PNB Housing Finance reports 42.8% YoY growth in Q3 net profit

PNB Housing Finance has delivered robust financial results for the third quarter of FY25, reporting a 42.8% year-on-year increase in net profit, which reached INR 483.3 crore. This marks a 2.9% rise compared to the previous quarter, underscoring the company’s strong operational performance.

The company’s retail disbursements grew by 31% year-on-year, totaling INR 5,380 crore for the quarter. Notably, the Affordable and Emerging Markets segments played a key role in driving this growth. The affordable housing segment saw a remarkable surge in disbursements, which grew by 126.8% YoY and 46.0% QoQ, amounting to INR 920 crore. Similarly, the Emerging Markets segment recorded a 39.3% YoY increase and a 6.8% QoQ rise, contributing INR 1,105 crore to the disbursement total.

PNB Housing Finance also made significant strides in improving its asset quality. The company’s Gross Non-Performing Assets (NPA) ratio declined by 54 basis points to 1.19% as of December 31, 2024, compared to 1.73% a year earlier. Additionally, the company recovered INR 53 crore from its retail written-off pool during the quarter, further strengthening its financial position.

For the first nine months of FY25, the company posted a profit after tax (PAT) of INR 1,385.8 crore, marking a 29.7% YoY increase from INR 1,068.8 crore in the same period last year. This impressive performance reflects the company’s ability to maintain strong growth while improving profitability.

PNB Housing Finance’s capital position remains solid, with a Capital Risk Adequacy Ratio (CRAR) of 28.8% and a Tier I capital ratio of 28.0% as of December 31, 2024. This robust capital base provides the company with a strong foundation for future growth and risk management.

Commenting on the results, Girish Kousgi, Managing Director and CEO of PNB Housing Finance, emphasized the company’s continued success in its growth and profitability metrics. “Our retail segment saw a 17.5% growth, and we recorded an annualized Return on Assets (RoA) of 2.48% for the first nine months of FY25. The affordable housing segment performed exceptionally well, delivering a 127% YoY growth in disbursements. The improvement in asset quality, with Gross NPA standing at 1.19%, is a testament to our strong risk management practices. We also secured a refinance sanction of INR 5,000 crore from the National Housing Bank (NHB) and an external commercial borrowing (ECB) sanction of USD 100 million in Q3 FY25. Additionally, we have signed an MoU with NHB under the Pradhan Mantri Awas Yojna Urban 2.0 to support eligible beneficiaries under the Interest Subsidy Scheme. With our strong presence in the Affordable and Emerging Markets segments, we are well-positioned to capitalize on the growth opportunities ahead.”

PNB Housing Finance’s performance in Q3FY25 reflects its strategic focus on affordable housing, its efforts to improve asset quality, and its ongoing expansion into emerging markets, positioning it for continued success in the future.