PNB Housing Finance Limited is one of India’s leading housing finance companies (HFCs)

Revenue & Growth AUM (Assets Under Management) has shown steady growth (~10–15%), driven mainly by retail housing loans. The company has shifted focus from wholesale lending to retail, improving stability and reducing risk. Disbursements are improving, especially in the affordable and prime housing segments. Profitability Net Interest Margin (NIM) remains stable around 3.5–4%, which is healthy for an HFC. Profitability has improved due to lower credit costs and better asset quality. Net profit growth has been strong in recent quarters due to reduction in NPAs and higher recoveries. Asset Quality Significant improvement in asset quality over the last 2–3 years. Gross NPA reduced to around 1.3–1.5%, down from much higher levels earlier. Credit cost has declined sharply, supporting profit growth. Balance Sheet Well-capitalized with Capital Adequacy Ratio (CAR) above 28%, providing strong growth headroom. Growth still slower compared to top HFCs like Bajaj Housing Finance ROE still below industry leaders Legacy issues from wholesale book still impact perception Moderate dependence on LAP segment Overall View PNB Housing Finance is in a turnaround phase, with strong improvement in asset quality, stable margins and better growth visibility. The shift toward retail lending has reduced risk and improved long-term outlook. While not yet a top-tier performer, the company shows steady recovery and potential for rerating if growth and return ratios continue to improve. SEBI Registered Research Analyst Disclaimer (INH000013174): This analysis is prepared only for educational and informational purposes and should not be considered as investment advice, buy recommendation or sell recommendation. Investors should do their own research and consult their financial advisor before taking any investment decision. Registration No.: INH000013174.