PNB Housing Finance Approves ₹5,000 Crore NCD Issuance
PNB Housing Finance's board 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. Shares of PNB Housing Finance rose 1.27% on the BSE.
Pnb Housing FinanceNcd IssuanceFinancial PerformanceAsset QualityStock MarketReal Estate NewsSep 05, 2025
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.
Frequently Asked Questions
What is the total amount of NCDs approved by PNB Housing Finance's board?
PNB Housing Finance's board has approved the issuance of non-convertible debentures (NCDs) worth up to ₹5,000 crore.
How will the NCDs be issued?
The NCDs will be issued on a private placement basis, with or without a green shoe option, in one or more tranches.
What was PNB Housing Finance's net profit for the first quarter of 2025?
PNB Housing Finance reported a net profit of ₹533.5 crore for the first quarter that ended June 30, 2025, a 23.2% YoY increase.
What is the current gross non-performing assets (GNPA) ratio of PNB Housing Finance?
As of June 30, 2025, PNB Housing Finance's gross non-performing assets (GNPA) ratio is 1.06%.
How did PNB Housing Finance's shares perform on the BSE on September 5?
Shares of PNB Housing Finance Ltd ended at ₹792.50, up by ₹9.90 or 1.27%, on the BSE on September 5.
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