PNB Housing Finance’s total retail loan portfolio stood at ₹79,439 crore at the end of September, up 17 per cent year-on-year (yoy), with prime loans accounting for the largest share at ₹48,914 crore | Photo credit: cueapi
Mortgage giant PNB Housing Finance is eyeing growth in the higher-yield affordable housing and emerging market lending segments in the second half of FY26, and expects corporate loan disbursements to occur over the same period, the housing finance company’s (HFC) senior management said. business line.
“Every quarter, we are expanding our mix of emerging and affordable home loans. Last quarter, these two segments constituted 37 percent of our retail loan portfolio, this quarter they stood at 38 percent, and we expect the two segments to reach 40 percent by the end of FY26. By the end of FY27, we expect these two segments to account for 42 to 45 percent of the retail loan portfolio,” said Vinay Gupta, Chief Financial Officer (CFO), PNB Housing Finance.
PNB Housing Finance’s total retail loan book stood at ₹79,439 crore at the end of September, up 17 per cent year-on-year (yoy), with prime loans accounting for the largest share at ₹48,914 crore. The corporate loan book stood at ₹332 crore, down 78 per cent year-on-year, with the HFC not disbursing a single corporate loan in H1FY26.
“Business has picked up again. We have started again and a number of proposals have been approved. But you would appreciate it if they are big ticket loans, let’s say between ₹100 crore and ₹200 crore, and these cases require a lot of due diligence before any disbursements happen. But we would see some disbursements happening in the second half of FY26,” said Jatul Anand, executive director.
Asset quality, spreads
The HFC expects to end the current fiscal year with negative to very low credit costs in the current fiscal year, due to better repayment trends and expected recoveries on written-off accounts. Credit costs amounted to 0.53 percent in the second quarter.
“We have been working very strongly on our collections and you must have seen a sequential decline in NPAs. This quarter too, the momentum continues. We are at 1.04 percent GNPA (gross NPA ratio) in the second quarter, with a decline of 2 basis points (bps) sequentially, and our collection efficiency is improving and a lot of steps have been taken in this regard. Our asset quality should remain stable from here on out,” Anand said.
HFC’s interest rate spread remained around 2.26 percent in the first half, but net interest margin (NIM) declined slightly due to lower returns on investments, Gupta said.
“The decline in NIM was mainly due to lower investment returns, but on the corporate side, our spreads and yields remain sustained. Given the current competitive environment, NIM will continue to be under pressure. We expect NIM for H2FY26 to be in the range of 3.6 to 3.7 percent,” he added.
Succession
According to Anand, the HFC could appoint a new MD and CEO within a month as the board has extensively reviewed both internal and external candidate applications. Former HFC CEO Girish Kousgi resigned from the company earlier this year citing personal reasons.
“My assessment is that it should be done within a month. Meanwhile, the way this company is run in the meantime is equally important. We have performed well on all parameters and have satisfied all stakeholders.”
Published on October 29, 2025
#PNB #Housing #sees #growth #affordable #housing #commercial #loans #officials