Financial Performance Overview
PNB Housing Finance Limited reported strong financial performance for FY2025-26 with consolidated net profit increasing 18.4% to ₹2,291.24 crore from ₹1,936.14 crore in the previous year. Total income grew 10.6% to ₹8,505.04 crore, driven by interest income of ₹8,071.17 crore. The company's Assets Under Management reached ₹90,921 crore, representing 13% year-on-year growth, with retail loans constituting ₹86,946 crore of the total portfolio.
Asset Quality and Capital Position
Asset quality showed significant improvement with gross NPAs declining to 0.93% (from 1.09% YoY) and net NPAs reducing to 0.57% (from 0.69% YoY). The company maintained strong capital adequacy with CRAR at 27.26%, though this decreased from 29.38% in the previous year due to business growth. Tier I capital stood at 26.89% while Tier II capital was 0.37%. The company received credit rating upgrades during the year, with CARE Ratings and India Ratings both upgrading to AAA 'Stable' from AA+.
Funding and Liquidity Profile
Total borrowings increased to ₹71,199 crore with diversified funding sources including bank borrowings (₹43,543 crore), deposits (₹18,055 crore), debt securities (₹9,270 crore), and external commercial borrowings (₹5,415 crore). The company maintained a healthy liquidity position with cash and equivalents of ₹2,483 crore and investments of ₹2,777 crore primarily in government securities.
Annual General Meeting and Corporate Actions
The company will hold its 38th Annual General Meeting on August 17, 2026 via video conference to consider several resolutions including adoption of financial statements, declaration of dividend of ₹8 per equity share (80% payout), reappointment of directors, and approval of special business items. Special business includes material related party transactions with Punjab National Bank and PNB Gilts Limited, increase in borrowing limits to ₹1,50,000 crore, and appointment of new independent directors.
Corporate Governance and Compliance
The annual report confirms full compliance with SEBI Listing Regulations, Companies Act 2013, and RBI/NHB directives. The board held 23 meetings during FY26 with 91.54% average attendance. Committee structure includes Audit Committee (14 meetings), Nomination and Remuneration Committee (20 meetings), and specialized committees for risk management and fraud monitoring. Corporate governance certificates from Sanjay Grover & Associates and secretarial audit report from Vinod Kothari & Company confirmed regulatory compliance.
CSR Activities and Spending
The company spent ₹12.02 crore on CSR activities against an obligation of ₹42.25 crore, representing 28.4% of the mandated spending. Through implementing partner Pehel Foundation, the company created 187 capital assets including medical equipment, solar power systems, water ATMs, and educational infrastructure across multiple states. The unspent amount of ₹30.23 crore was transferred to the Unspent CSR Account.
Subsidiary Performance and Related Parties
PHFL Home Loans and Services Limited, the wholly-owned subsidiary, reported profit after tax of ₹15.69 crore with total assets of ₹150.17 crore and proposed dividend of ₹50 crore. PEHEL Foundation, registered as a charitable organization, reported a loss of ₹0.05 crore. Related party transactions with Punjab National Bank (promoter holding 28.03%) and other group entities were conducted at arm's length prices.
Auditor Reports and Key Matters
Statutory auditors M M Nissim & Co LLP and C N K & Associates LLP issued unmodified opinions on both standalone and consolidated financial statements. Key audit matters identified included Expected Credit Loss estimation on loans (₹913.40 crore allowance) due to complex models and judgmental assumptions, and Information Technology systems and controls given the company's heavy reliance on automated systems for financial reporting.
Risk Management and Derivatives
The company maintains comprehensive risk management policies covering credit, market, and liquidity risks. Derivative exposures included currency swaps with notional value of ₹5,443 crore (fair value gain of ₹392 crore) and interest rate swaps with notional value of ₹3,944 crore, primarily used for hedging foreign currency and interest rate risks. The net fair value of derivatives stood at ₹266 crore as of March 31, 2026.
Shareholder Information and Communication
The company had 192,512 shareholders as of March 31, 2026 with 100% shares in dematerialized form. Shareholders can participate in the AGM through remote e-voting via NSDL from August 13-16, 2026, with August 11, 2026 as the record date. All documents have been circulated electronically to shareholders with registered email addresses and are available on the company website www.pnbhousing.com.