PNB Housing Finance Q2 profit rises 6% to Rs 617 crore; AUM grows 17%

New Delhi: PNB Housing Finance on Wednesday reported a 6 percent year-on-year increase in net profit to Rs 617 crore for the second quarter ended September 30, 2026, supported by higher interest income and growth in its loan portfolio.

The housing finance company had posted a net profit of Rs 582 crore in the corresponding quarter of the previous financial year, according to its regulatory filing.

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Total income rose nearly 14 percent to Rs 2,424 crore during the July-September quarter, compared with Rs 2,131 crore in the year-ago period.

Interest income increased to Rs 2,289 crore from Rs 2,017 crore, reflecting growth in the company's lending operations.

Net interest income rises 15 percent

PNB Housing Finance reported a 15 percent increase in net interest income (NII) to Rs 878 crore, against Rs 765 crore in the corresponding quarter last year.

However, its net interest margin (NIM), a key indicator of lending profitability, remained unchanged at 3.67 percent.

The stable margin suggests that while the company expanded its interest earnings, it did not achieve an improvement in its interest spread during the quarter.

Asset quality improves

The company's asset quality strengthened, with gross non-performing assets (NPAs) declining to 0.91 percent as of September 30, 2026, from 1.04 percent a year earlier.

The reduction in stressed assets indicates an improvement in the quality of its loan portfolio.

However, its capital adequacy ratio moderated to 27.02 percent from 29.80 percent at the end of September 2025, reflecting a reduction in its capital buffer compared with the previous year.

Loan portfolio maintains growth

PNB Housing Finance's assets under management (AUM) increased 17 percent year-on-year to Rs 98,210 crore as of September 30, 2026, highlighting continued expansion in its housing finance business.

The quarterly performance presents a mixed picture. While the company recorded healthy growth in its loan portfolio, interest income and asset quality, net profit increased at a relatively modest pace of 6 percent despite a 15 percent rise in NII.

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The divergence between interest income growth and bottom-line performance indicates that factors beyond core lending income influenced overall profitability during the quarter. However, the figures provided do not establish which expense or income components accounted for the difference.

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