PNB Housing Finance Ltd

Instruments / Rating Action

• Long-term bank facilities programme (₹10,000 crore) upgraded to AAA (Stable) from AA+ (Stable).
• NCDs (₹500 crore) upgraded to AAA (Stable) from AA+ (Stable).

Rationale & Financials

• GS3 assets at 0.9% as of June 2026.
• AUM ₹93,021 crore; PAT FY2026 ₹2,291 crore.
• CAR 28.3%; net worth ₹19,794 crore; gearing 3.9x.
• Promoter PNB to remain sole promoter; stake around 28%.
• AHF and construction finance segments monitorable; portfolio seasoning limited.
• Profitability: FY2026 PAT ₹2,291 crore; RoMA 2.5%.
• Liquidity adequate; LCR 146% (June 2026); diversified funding.

Outlook & Sensitivities

• Outlook: Stable.
• Negative factors: asset quality deterioration or promoter-support changes.

Liquidity & Funding

• Undrawn lines ₹5,553 crore; free liquidity ₹2,788 crore.
• Reliance on deposits; diversified funding mitigates liquidity risk.

Agency & Regulator

• Rating agency: ICRA Limited; upgrade of bank facilities and NCDs to AAA (Stable).

Meeting Details

• Analyst / Institutional Investors physical meeting in Gurugram scheduled for Aug 25, 2026 is cancelled.
• Organizer: PNB Housing Finance Limited.
• Purpose: Update on meeting cancellation.
• Key company participant: Company Secretary.

Meeting Details

• Date & time: August 21, 2026, 3:00 PM–4:00 PM IST.
• Type & mode: Group investor meeting, physical, Gurugram.
• Participants from company: MD & CEO, CFO, National Head – Corporate Planning & Investor Relations.
• Subject: discussions on business strategy, margins, asset quality, return profile, and outlook.
• Materials: Presentations and earnings call transcripts already submitted to exchanges; no new information shared.
• Investor groups: Dymon Asia Capital, Balyasny Asset Management, Millennium Capital Management.

Instruments & Ratings

• NCDs 15 bn: IND AAA/Stable; rating assigned.
• NCDs 44.55 bn (reduced from 49.55): IND AAA/Stable; rating affirmed.
• Bank loan facilities 115 bn: IND AAA/Stable; rating affirmed.

Rationale & Outlook

• Timely liquidity and equity support expected from promoter PNB.
• PNB to maintain stake and share its brand with PNBHF.
• PNBHF among top housing financiers with improving profitability.
• Asset quality improved; loan book fully granularised.
• Funding raised at competitive rates; liquidity buffers adequate.
• Credit cost expected to remain modest in near to medium term.
• Affordable housing and new micro housing / emerging developer finance monitorable.
• Outlook: Stable.

Key Financials & Liquidity

• Total adjusted assets: INR 934.7 billion (FY26).
• Total adjusted equity: INR 191.7 billion (FY26).
• PAT: INR 23.28 billion (FY26); RoA: 2.65%.
• Tier 1 capital: 26.9%; Debt/Equity: 3.71x.
• Gross NPAs: 0.93%; provisions adequate.
• Liquidity: INR 45.6 billion; ~2 months of advances.

Leverage & Funding Profile

• Leverage (debt/tangible equity): 3.72x in 1QFY27.
• Management targets ~4.5x leverage over two years.
• Deposits 24% of funding mix as of June 2026.
• NHB funding share 16% in 1QFY26.

Rating Sensitivities

• Downgrade triggers include PNB rating downgrade or shareholding decline.
• Higher credit costs or leverage above 5x could hurt rating.
• Liquidity buffer erosion may negatively impact outlook.

Change vs Prior Rating

• New NCDs rated IND AAA/Stable; existing ratings reaffirmed.

Meeting Details

• Date: August 25, 2026; Time not disclosed; Group meeting; Physical; Gurugram; Organizer: Citi Connect.

Participants

• Senior management officials to participate.

Purpose

• Purpose: investor interaction with Citi Connect; discussion of investor presentations.

Additional Notes

• Investor presentations already submitted to stock exchange and available on company website.

Meeting Details

• Date and time: August 18, 2026; 1:00 AM – 6:00 PM IST.
• Type and mode: One-on-One and Group meetings; Physical in Mumbai.
• Event/organiser: Motilal Oswal 22nd Annual Global Investor Conference, 2026.
• Key company participants: MD & CEO; CFO; National Head - Corporate Planning & Investor Relations.
• Purpose: Discuss business strategy, margins, asset quality, return profile, and future outlook.
• Recordings, transcripts, and presentations already submitted to exchanges; available on the company website.

AGM Details

• AGM held on August 17, 2026 via Video Conferencing (VC).
• Dividend of INR 8 per equity share approved; payable August 26, 2026.

Key Resolutions

• Dividend: INR 8 per share declared; payable Aug 26, 2026. (Passed).
• D. Surendran reappointed as non-executive nominee director liable to rotate. (Passed).
• NCDs: Board authorized private placement of up to Rs 10,000 crore. (Passed).
• Borrowing: Increased limit from Rs 1,05,000 crore to Rs 1,50,000 crore. (Passed).
• Charge: Creation of charge over assets to secure borrowings approved. (Passed).
• Shreekant appointed Independent Director. (Passed).
• Rajiv Kumar Singh appointed Independent Director. (Passed).

Director Changes

• D. Surendran: Reappointed as Non-Executive Nominee Director, liable to rotate.
• Shreekant appointed Independent Director on July 10, 2026.
• Rajiv Kumar Singh appointed Independent Director on July 10, 2026.

AGM details

• AGM held August 17, 2026 at 3:00 PM IST via VC/OAVM.
• Voting cut-off dated August 11, 2026.
• Mode: VC/OAVM; venue not applicable.

Key resolutions and outcomes

• Ordinary: Receive and adopt audited standalone and consolidated financial statements for the year.
• Dividend: Declare dividend of INR 8 per equity share.
• Re-appoint D. Surendran as Director.
• Approve related party transactions with Punjab National Bank.
• Approve related party transactions with PNB Gilts Limited.
• Issue of NCDs/bonds up to INR 10,000 crore via private placement.
• Increase borrowing limits under Section 180(1)(c) to higher cap.
• Create charge over assets to secure borrowings.
• Appoint Shreekant as Independent Director.
• Appoint Rajiv Kumar Singh as Independent Director.

Dividend

• Dividend of INR 8 per equity share approved.

Director changes

• D. Surendran re-appointed as Director.
• Shreekant appointed Independent Director.
• Rajiv Kumar Singh appointed Independent Director.

Material related party transactions

• Approval of related party transactions with Punjab National Bank.
• Approval of related party transactions with PNB Gifts Limited.

Borrowings and charges

• Approval for NCD/bonds issuance up to INR 10,000 crore.
• Borrowing limits increased under Section 180(1)(c).
• Creation of charge over assets approved.

AGM details

• Date and time: August 17, 2026, 03:00 P.M. IST.
• Mode: two-way Video Conferencing; venue: Registered Office, New Delhi.

Ordinary resolutions

• Adoption of Consolidated and Standalone financial statements for year ended March 31, 2026.
• Declaration of Dividend.
• Re-appointment of Mr. D. Surendran as Director.

Special resolutions

• Approval for material related party transactions with Punjab National Bank.
• Approval for material related party transactions with PNB Gilts Limited.
• Offer for subscription of NCDs or bonds up to Rs. 10,000 Crore via private placement.
• Increase borrowing limits from Rs 1,05,000 crore to Rs 1,50,000 crore.
• Creation of charge over movable and immovable properties for borrowings under Section 180(1)(a).
• Appointment of Mr. Shreekant as Independent Director.
• Appointment of Mr. Rajiv Kumar Singh as Independent Director.

Voting status

• Voting results to be submitted to stock exchanges and placed on the company website.