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PNB Housing Finance reported a 4 per cent year-on-year increase in its net profit for the first quarter of FY27, supported by growth in interest income and overall business expansion. The company also recorded a rise in total income, net interest income and assets under management during the quarter. While its asset quality improved with a lower gross NPA ratio, the net interest margin and capital adequacy ratio witnessed a decline compared to the corresponding period last year. The lender continued to maintain healthy capital levels despite the moderation.
PNB Housing Finance has reported a 4 per cent year-on-year increase in its standalone net profit to INR 557 crore for the first quarter of FY27, compared to INR 534 crore in the corresponding quarter of the previous financial year.
According to the company's regulatory filing released this week, total income increased to INR 2,265 crore during the quarter from INR 2,082 crore in the same period last year, driven by higher lending activity and growth in interest earnings.
Interest income rose to INR 2,138 crore, up from INR 1,980 crore in the year-ago period. Net interest income (NII), a key indicator of a lender's core earnings, also registered a 6 per cent increase to INR 803 crore, compared to INR 760 crore in the first quarter of FY26.
Despite the rise in earnings, the company's net interest margin (NIM) declined to 3.5 per cent from 3.74 per cent recorded in the corresponding quarter of the previous financial year, indicating some pressure on lending spreads.
On the asset quality front, PNB Housing Finance reported an improvement in its loan book. Gross non-performing assets (NPAs) reduced to 0.95 per cent, compared to 1.06 per cent at the end of the first quarter of FY26, reflecting continued efforts to strengthen recoveries and maintain credit quality.
The company's capital adequacy ratio stood at 28.26 per cent, down from 29.68 per cent reported a year earlier. However, the ratio remained well above the regulatory requirement, providing the lender with sufficient capital to support future business growth.
Assets Under Management (AUM) grew by 13 per cent year-on-year to INR 93,021 crore, compared with INR 82,100 crore at the end of the first quarter of FY26. The increase reflects continued expansion in the company's loan portfolio amid sustained demand for housing finance.
PNB Housing Finance has been focusing on expanding its retail lending portfolio while maintaining asset quality. Over the past few quarters, the company has continued to strengthen its affordable and prime housing loan segments, alongside improving operational efficiency and keeping bad loans under control.
Source PTI
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