Mumbai: PNB Housing Finance, one of the premier housing finance institutions in India, has recently announced a significant upgrade in its credit rating from India Ratings. The company's Non-Convertible Debentures (NCDs) and bank loans have been elevated from 'IND AA+' to 'IND AAA', reflecting a Stable Outlook. This upgrade highlights the company's robust performance across critical business metrics, including enhanced profitability and improved asset quality. Moreover, it underscores the effective diversification of its loan portfolio, which has successfully mitigated concentration risks.
In a statement addressing this milestone, Mr. Jatul Anand, Executive Director of PNB Housing Finance, expressed pride in achieving the 'IND AAA' rating, viewing it as a crucial achievement in the company's growth trajectory. He emphasized that this upgrade reaffirms the strength of the company's business fundamentals, strategic vision, and sound financial health. Anand pointed out that the consistent rating upgrades over the past two years serve as a testament to the confidence entrusted in PNB Housing by stakeholders, including its promoter, Punjab National Bank. He reiterated the commitment to enhancing the retail-focused business model while ensuring robust asset quality and liquidity.
The recent upgrade comes on the heels of a previous enhancement from 'IND AA' to 'IND AA+' in the third quarter of FY24. This sequence of upgrades not only signifies PNB Housing's sustained progress but also reflects the unwavering trust of investors in its financial robustness and governance standards. The company's ability to maintain resilience amidst varying business cycles has been pivotal in achieving these commendations.
As of September 30, 2025, PNB Housing Finance reported a 17% year-on-year growth in its Retail Loan Assets, reaching an impressive ₹79,439 crores, which forms 99.6% of its total loan assets. Furthermore, the company's Gross Non-Performing Assets (NPA) stood at 1.04%, with a notable Return on Assets (ROA) at 2.65% for the first half of FY26. The Capital Risk Adequacy Ratio is a strong 29.80%, and the cost of borrowing is recorded at 7.74% during the same period, showcasing the company's financial strength and prudent management strategies.
The upgrade to 'IND AAA' not only enhances PNB Housing Finance's reputation in the financial market but also positions the company favorably for future growth, enabling it to better serve its clients and stakeholders while contributing to the overall growth of the housing finance sector in India.
