PNB Housing Q2 profit up 6%; disbursements jump 60%
PNB Housing Finance's profit rose 6% to Rs 617 crore in Q2 FY27, with loan disbursements up 60%, bad loans at 0.91% and a CRISIL AAA upgrade.
PNB Housing Finance reported a consolidated profit of Rs 617 crore for the July-September quarter of 2026-27 (Q2 FY27), up 6% from Rs 582 crore a year earlier and 11% above the previous quarter. The board approved the results on 28 October 2026. Disbursements, the new loans it paid out, rose 60% to Rs 9,609 crore, and CRISIL, a rating agency, upgraded the company to AAA, the top rating. The figures come from Elets BFSI, Investing.com and Indian Masterminds, which cite the company's results.
What the quarter looked like
Retail disbursements hit a record Rs 9,250 crore, per Elets. Assets under management (the total loans the company runs) grew 17% to Rs 98,210 crore, and the loan book itself grew 19% to Rs 95,079 crore. Net interest income, the gap between what it earns on loans and pays on borrowings, rose 15% to Rs 878 crore from Rs 765 crore. Indian Masterminds says profit beat a market estimate of Rs 580 crore.
Profit grew much more slowly than disbursements. Investing.com reports operating costs rose 20% to Rs 260 crore, with employee costs up 27%, and Elets says the company had 404 branches at the end of September and has started a micro housing finance product.
What the AAA upgrade means
A credit rating is an agency's opinion of how safely a borrower will repay. AAA is the highest, and Elets says the company now has it from all four major domestic agencies. For a lender that funds itself by borrowing, a higher rating generally means investors accept a lower interest rate. Investing.com says management expects this to help borrowing costs. Its cost of borrowing was 7.31%, down from 7.36% in June and 7.69% a year ago.
Loan quality and a flattering one-off
Gross NPA (loans overdue by 90 days or more) fell to 0.91% from 1.04% a year ago, and net NPA was 0.55%. Investing.com puts retail collection efficiency at 99.3%. Those are low bad-loan numbers for a lender.
Part of the strength came from recoveries of Rs 75 crore from loans previously written off, which pushed credit cost to minus 19 basis points (a basis point is one-hundredth of a percentage point). Investing.com says management expects credit costs to settle at 10 to 12 basis points as those recoveries fade.
The net interest margin was 3.67%, but both Elets and Investing.com say it would have been 3.49% without a one-off item from the early repayment of a corporate loan. Elets calls it a gain; Investing.com calls it a charge. Since removing it lowers the margin, it appears to have helped the quarter.
What is unclear
Investing.com's figures do not fully add up: retail disbursements of Rs 9,250 crore plus Rs 838 crore of pool buyouts (loans bought from other lenders) exceed the Rs 9,609 crore total. The company's presentation would settle this. Investing.com also says its article was produced with AI support and editor review.
What it means for home-loan borrowers
Investing.com says that, after a 25 basis point RBI repo rate rise, PNB Housing expects retail lending rates to go up by 10 to 15 basis points and corporate rates by 15 to 20 basis points from 1 November 2026, and that management sees the margin effect as neutral to positive. We could not confirm this in the other two reports, and Elets mentions only that the RBI has moved to "calibrated tightening". Existing borrowers on floating-rate loans should check their lender's notice. Lenders compete on funding cost, so a AAA rating is an advantage as borrowing gets dearer.
What to watch next
- The company's own presentation and filing, to settle the disbursement and rate-rise details.
- Whether disbursements stay near Rs 9,000 crore a quarter, as the company aims for loan growth of 18% to 20% in 2026-27.
- Credit costs as recoveries from written-off loans decline.
Key takeaways
- PNB Housing's profit rose 6% to Rs 617 crore in July-September 2026, while disbursements rose 60% to Rs 9,609 crore.
- CRISIL's upgrade to AAA gives it the top rating from all four major domestic agencies, which should help its borrowing costs.
- Bad loans are low at 0.91% gross NPA, though recoveries and a one-off item flattered the quarter.
- A reported 1 November lending-rate rise comes from one outlet only and should be checked against the company.
Sources
- [Elets BFSI: PNB Housing Finance Q2 FY27, disbursements jump 60% to Rs 9,609 crore, profit rises 6%](https://bfsi.eletsonline.com/pnb-housing-finance-q2-fy27-profit-617-crore-disbursements-60-percent-record-retail-aaa-rating/)
- [Investing.com: PNB Housing Q2 FY27 slides, 60% disbursement surge, AAA upgrade](https://www.investing.com/news/company-news/pnb-housing-q2-fy27-slides-60-disbursement-surge-aaa-upgrade-93CH-4980043)
- [Indian Masterminds: PNB Housing Finance Q2 FY27 results, net profit rises 6% to Rs 617 crore](https://indianmasterminds.com/news/pnb-housing-finance-q2-fy27-results-net-profit-aum-growth-246410/)
Tags: PNB Housing Finance NBFC Housing finance Quarterly results Credit rating