PNB Housing Finance Limited – Investor Presentation Summary

Key Operational Highlights

  • Disbursements scaled up 60% YoY to ₹9,609 crore in Q2 FY27 vs ₹5,995 crore in Q2 FY26
  • Overall loan book grew 19% YoY to ₹95,079 crore as on September 30, 2026
  • Corporate loan book increased 107% YoY to ₹689 crore as on September 30, 2026
  • Number of branches: Affordable - 234, Emerging Markets - 88, Prime - 81
  • Key drivers: Focus on high-yielding Affordable and Emerging Markets segments, reinitiated corporate lending with risk management cap at ~10% of total portfolio, technology adoption

Segment-wise Performance

  • Affordable segment: Loan asset ₹9,438 crore (10% QoQ growth, 45% YoY growth), Disbursements ₹1,149 crore (107% QoQ growth, 40% YoY growth), Yield 11.63%
  • Emerging Markets: Loan asset ₹29,318 crore (6% QoQ growth, 22% YoY growth), Disbursements ₹2,882 crore (42% QoQ growth, 36% YoY growth), Yield 9.38%
  • Prime segment: Loan asset ₹54,635 crore (4% QoQ growth, 12% YoY growth), Disbursements ₹4,380 crore (42% QoQ growth, 44% YoY growth), Yield 9.07%
  • DA Pool Buyout: Loan asset ₹999 crore (503% QoQ growth), Disbursements ₹838 crore (469% QoQ growth)
  • Explanation: Affordable segment yield declined due to rollout across selected Prime and Emerging Markets branches; started Affordable Housing business in select branches in Q1 FY27 and Micro Housing through existing branches in Q2 FY27

Financial Highlights

  • Revenue: ₹2,293 crore in Q2 FY27 (13% YoY growth, 7% QoQ growth)
  • Finance Cost: ₹1,415 crore in Q2 FY27 (12% YoY growth, 6% QoQ growth)
  • Net Interest Income: ₹878 crore in Q2 FY27 (15% YoY growth, 9% QoQ growth)
  • PAT: ₹617 crore in Q2 FY27 (6% YoY growth, 11% QoQ growth)
  • EPS: ₹23.7 (Basic)
  • Margins: Spread 2.43% (31 bps QoQ expansion), NIM 3.67% (17 bps QoQ expansion), GIM 4.10% (17 bps QoQ expansion)
  • YoY/QoQ comparison: Yield improved to 9.74% from 9.48% in Q1 FY27, Cost of Borrowing declined to 7.31% from 7.36% in Q1 FY27
  • Drivers: Yield improvement, cost efficiency, superior asset quality, negative credit cost
  • Key Risks: Not explicitly disclosed

Geographical Revenue Split

  • Domestic vs Export: Not specified
  • Top 5 State share in Retail Loan Asset: Maharashtra 18.0%, Delhi NCR 12.2%, Tamil Nadu 12.1%, Karnataka 8.9%, Telangana 8.5%
  • Regional Breakdown: Top 5 states contribution reduced to 69.5% of loan asset from 72.9% a year ago

Balance Sheet Snapshot

  • Net Debt/Equity: Not specified
  • Reserves: ₹19,988 crore as of September 30, 2026
  • Current Assets/Liabilities: Not specified
  • Working Capital/Leverage Metrics: Not specified
  • Financial Health Insights: Strong recovery from written-off pool (₹75 crore in Q2 FY27, ₹141 crore in H1 FY27)

Capex & Cash Flow Health

  • Capital Expenditure: Not specified
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Not specified
  • Investment Rationale: Focus on technology adoption, AI initiatives, high-yielding portfolio growth

Strategic & R&D Initiatives

  • Investments in Innovation: Six AI initiatives including Pre-Delinquency AI Calling, Bucket-X Calling, Intelligent Document Processing, Knowledge BOT, Hiring Agent, Top-Up AI Calling
  • Expected impact: Proactive collection calls reducing early delinquency, improved collection efficiency, automated document processing, policy query resolution, digital hiring process, digital top-up offers
  • Strategic Rationale: Leverage technology for paperless journey across loan cycle, drive productivity and efficiency

Industry Trends & Business Environment

  • Macro/Industry Trends: Not explicitly specified
  • Impact on Company: Asset quality metrics remained resilient with stable delinquency and NPA trends; portfolio performance stronger than industry benchmarks (ICRA reported 30+ and 90+ delinquencies for AHFCs at 3.6% and 1.2% as of March 2026)

Management Commentary & Growth Outlook

  • Strategic Outlook: Driving sustainable profitability through NIM optimization, cost efficiency and superior asset quality
  • FY Guidance: Not explicitly specified
  • Market Share Targets: Not specified
  • Risks and Opportunities: Not explicitly highlighted

ESG Updates

  • Affordable housing focus: 69% of retail loan accounts belong to EWS/LIG/MIG categories
  • Women empowerment: 21% of retail loan accounts belong to women
  • Digital adoption: 99.8% of loan applications through digital channels
  • Carbon accounting: Measured financed emissions using PCAF standards

Technology Update

  • Digitizing onboarding: In-house developed sales enablement platform "Infinity", e-Sign & e-Stamp implementation
  • AI initiatives: Six live/POC projects focused on collections, document processing, hiring, and customer service

Shareholding & Governance

  • Top shareholders: Promoter (PNB), Birla Sun Life MF, HSBC MF, ICICI Prudential MF, Vanguard, SBI Life Insurance, PI Opportunities AIF V LLP, HDFC MF, Nippon MF, Axis MF
  • Board of Directors: D. Surendran (Chairperson), Tejendra Mohan Bhasin, Gita Nayyar, Neeraj Vyas, Dipankar Mahapatra, Shreekant, Rajiv Kumar Singh, Ajai Kumar Shukla (MD & CEO)