PNB Housing Finance Approves ₹5,000 Crore NCD Issuance

PNB Housing Finance Limited, a leading mortgage firm, announced on Friday, September 5, that its board of directors has approved the issuance of non-convertible debentures (NCDs) worth up to ₹5,000 crore. The NCDs will be issued on a private placement basis, with or without a green shoe option, in one or more tranches. This strategic move is designed to bolster the company's financial position and support its growth initiatives.

The issuance of NCDs is a common financial strategy used by companies to raise capital without diluting equity. PNB Housing Finance's decision to issue NCDs comes at a time when the company is experiencing strong financial performance and a positive market outlook. The issuance may be undertaken by the board of directors or any committee authorized by it, from time to time.

First Quarter Results: PNB Housing Finance reported a significant 23.2% year-on-year (YoY) increase in net profit, reaching ₹533.5 crore for the first quarter that ended June 30, 2025. In the corresponding quarter of the previous fiscal, the company posted a net profit of ₹432.8 crore. This robust performance underscores the company's strong operational efficiency and market position.

The company's revenue from operations also showed a healthy 14% increase, reaching ₹2,076 crore against ₹1,823 crore in Q1FY25. The lender’s net interest income (NII) grew by 24.2% YoY to ₹688 crore, up from ₹554 crore. Gross margin, net of acquisition cost, stood at 4.06%, indicating efficient cost management and strong revenue generation.

Asset Quality: PNB Housing Finance continues to maintain a high standard of asset quality. The company's gross non-performing assets (GNPA) stood at 1.06% as of June 30, 2025, showing an improvement from 1.35% a year ago and 1.08% as of March 31, 2025. Retail GNPA declined to 1.07% as of June 30, 2025, compared to 1.39% on June 30, 2024, and 1.09% on March 31, 2025. The company maintained a clean book in its corporate lending portfolio, with corporate GNPA at nil across all three periods. Net non-performing assets (NNPA) stood at 0.69% as of June 30, 2025, with the retail segment reporting NNPA at 0.70%.

Market Performance: Shares of PNB Housing Finance Ltd ended at ₹792.50, up by ₹9.90 or 1.27%, on the BSE on September 5. This positive market response reflects investors' confidence in the company's strategic decisions and financial health.

In conclusion, PNB Housing Finance's approval of the ₹5,000 crore NCD issuance is a strategic move that aligns with the company's growth objectives and financial stability. The strong first-quarter results and improved asset quality further reinforce the company's position in the mortgage market.