PNBHOUSING

PNB Housing (PNBHF) delivered an all-round healthy performance, marked by: 1) a healthy retail loan growth of ~18% YoY, 2) an expansion of 5bp QoQ in NIMs, 3) a sustained improvement in asset quality, and 4) recoveries from its retail written-off pool, which resulted in provision write-backs for the entire year. PNBHF’s 4QFY25 PAT grew 25% YoY/14% QoQ to ~INR5.5b (~9% beat). FY25 PAT grew 28% YoY to INR19.4b. NII in 4QFY25 rose ~17% YoY to ~INR7.3b (in line). Opex rose ~19% YoY to ~INR2.12b (in line). PPOP grew ~14% YoY to INR6.5b (6% beat). Credit costs, net of recoveries, resulted in a write-back of ~INR648m, which led to net credit costs of -35bp (PQ: -20bp and PY: 4bp). We expect PNBHF to deliver a CAGR of 19% each in loans/PAT over FY25-27E and ~2.5%/14% RoA/RoE in FY27. Reiterate BUY with a TP of INR1,230 (based on 1.5x Mar’27E BVPS).