PNB Housing Finance Ltd announced a net profit of ₹521 crore for the third quarter on Wednesday (January 21), reflecting a year-on-year growth of 10.6% from ₹471 crore during the same period last year. The net interest income (NII) for Q3 was ₹757 crore, which is a 12.8% increase from ₹671 crore reported in Q3FY25.
As of December 31, 2025, the company’s retail loan assets increased by 16% year-on-year to ₹81,931 crore, making up 99.7% of total loan assets. The affordable and emerging markets segment experienced a 31% year-on-year growth, contributing 39% to retail loan assets. Overall, total loan assets rose by 14.3% year-on-year and 3% sequentially to ₹82,203 crore, while the corporate loan portfolio saw a significant decline of 78.1% to ₹272 crore compared to the previous year.
During Q3FY26, disbursements rose 15.6% year-on-year and 3.7% quarter-on-quarter to ₹6,217 crore. In the affordable and emerging markets segment, disbursements climbed 11.3% year-on-year to ₹2,935 crore, representing around 50% of total retail disbursements.
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Within the retail loan portfolio, affordable loan assets surged by 86% to ₹7,140 crore compared to last year, while emerging markets loan assets grew by 20.3% to ₹24,998 crore. The prime segment increased by 8.1% to ₹49,793 crore. Assets under management increased by 12.0% year-on-year and 2.6% sequentially to ₹86,048 crore.
Regarding profitability, pre-provision operating profit rose by 8.4% year-on-year but fell by 2.9% quarter-on-quarter to ₹628 crore. Excluding the estimated impact of ₹6 crore from the new labor code, pre-provision operating profit grew by 9.4% year-on-year and 1.9% sequentially to ₹634 crore.
Operating expenditure increased by 16.7% year-on-year and 10.5% quarter-on-quarter to ₹240 crore. The yield moderated to 9.72% in Q3FY26, while the borrowing cost decreased to 7.50%, resulting in a loan spread of 2.22%. The net interest margin stood at 3.63%, with a gross margin net of acquisition costs at 3.98%.
Asset quality remained stable, with a gross NPA of 1.04% as of December 31, 2025, down from 1.19% a year ago. The net NPA was at 0.68%, with retail GNPA at 1.04% and corporate GNPA remaining nil since June 30, 2024.
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Recoveries from the written-off pool reached ₹49 crore during the quarter, leading to a credit cost of minus 19 basis points in Q3FY26. The return on assets was 2.40% for Q3FY26 on an annualized basis and 2.57% for 9MFY26.
The company maintained a robust capital position, with a capital-to-risk-weighted assets ratio of 29.46% as of December 31, 2025. Tier I capital was at 28.92%, while tier II capital stood at 0.55%, indicating a comfortable capital adequacy buffer.
Ajai Shukla, Managing Director and CEO, stated, “As we move forward, our focus remains steadfast on enhancing our retail portfolio with a greater emphasis on the Affordable and Emerging Markets segment. We are dedicated to improving asset quality and sustaining profitability while ensuring responsible lending practices.
Customer satisfaction continues to be a priority, and we are investing in solutions that streamline processes, enhance turnaround times, and provide greater transparency for our customers.”
Shares of PNB Housing Finance Ltd closed at ₹933.00, down by ₹17.10, or 1.80%, on the BSE.
