New Delhi: PNB Housing Finance, one of India’s largest housing finance companies, has received a significant credit rating upgrade from India Ratings, elevating its secured credit instruments—including Non-Convertible Debentures (NCDs) and Bank Loans—from ‘IND AA+’ to the highest grade of ‘IND AAA’ with a Stable Outlook. This milestone underscores the company’s strong financial fundamentals, consistent performance, and the strategic backing of its promoter, Punjab National Bank.
The upgrade reflects PNB Housing’s sustained improvement across key business parameters, including profitability, asset quality, and loan book diversification. The rating agency cited the company’s granular loan portfolio and reduced concentration risk as key strengths. It also acknowledged the strategic importance of Punjab National Bank’s stake in PNB Housing, reinforcing long-term confidence in the company’s stability and governance.
Jatul Anand, Executive Director, PNB Housing Finance, commented: “We are proud to receive a credit rating upgrade from India Ratings to ‘IND AAA’, marking a significant milestone in our growth journey. It reaffirms the strength of our business fundamentals, strategic direction, strong financial health, and prudent risk management practices. The sustained trajectory of rating upgrades over the past two years is a testament to the confidence that the promoters Punjab National Bank, and our investors and stakeholders place in us. We remain committed to building a resilient retail-focused franchise, strengthening our asset quality, and enhancing our liquidity position.”
This latest upgrade follows a previous enhancement from ‘IND AA’ to ‘IND AA+’ in Q3 FY24, driven by a robust capital buffer following a capital infusion in February 2023, improved asset quality, and increased granularity in the loan book. The successive upgrades reflect PNB Housing’s resilience and consistent performance across business cycles.
Key Financial Highlights (as of 30 September 2025):
- Retail Loan Asset: ₹79,439 crore (17% YoY growth), forming 99.6% of total loan assets
- Total Loan Asset: ₹79,771 crore
- Gross NPA: 1.04%
- Return on Asset (ROA): 2.65% (annualized for H1 FY26)
- Capital Risk Adequacy Ratio (CRAR): 29.80%
- Cost of Borrowing: 7.74% in H1 FY26
The upgrade to ‘IND AAA’ places PNB Housing Finance among the most trusted and financially sound institutions in the housing finance sector. It also enhances the company’s ability to access capital at competitive rates, supporting its long-term growth strategy and retail expansion.
