PNBHOUSING - PNB Housing Finance Limited Share Price

During the earnings call held on October 27, 2025, management presented a positive outlook for PNB Housing Finance Limited. They reported disbursements of approximately INR 6,000 crore in Q2 FY26, marking a sequential growth of 20% from Q1 FY26. The retail loan book grew by 17% year-on-year, reaching INR 79,439 crore, which now constitutes 99.6% of the total loan book, totaling INR 79,779 crore. Notably, the Affordable and Emerging market segments together experienced a growth of 34% year-on-year, contributing 38% to the retail loan book.

Management highlighted a steady improvement in asset quality with a decrease in gross NPA to 1.04%, reflecting a decline from 1.06% in the prior quarter and 1.24% a year earlier. They reported a credit cost reversal of 53 basis points due to successful recoveries amounting to INR 59 crore. The company's cost of borrowing also decreased by 7 basis points to 7.69%.

The management emphasized their strategic focus on retail growth, particularly in the Affordable housing segment, with plans to expand their branch network by adding 40 to 50 branches annually. They forecasted a full-year growth rate of 17% to 18%, aligning with their previous quarter's performance.

Additionally, the return on assets increased to 2.73% for Q2 and 2.65% for H1, with return on equity at 13.14% for the quarter. They expressed confidence in sustaining long-term value delivery for stakeholders, reinforced by a strong management team and a resilient culture. As they progress through FY26, management aims to enhance customer experience and maintain robust asset quality while capturing the growing demand in India's housing market.

1. Devang Shah: "What is the update on the new CEO who is coming on the ground? Is it from the internal or external?"

   Jatul Anand: "The company is progressing in filling the vacancy, and the disclosures will go to the stock exchanges first. In the meantime, I am leading the team and reporting to the Board. Given the sensitivity of the process, I can't provide more specifics at this time."

2. Devang Shah: "What are we doing regarding growth trajectory in upcoming quarters?"

   Vinay Gupta: "We have guided for a growth rate of around 17% to 18% for the year, which remains intact as we have been growing between that range over the last two quarters."

3. Praful Kumar: "Can you provide details about the CEO search process"”applicants, timeframe?"

   Jatul Anand: "Due to the sensitivity of the CEO search process, I cannot share specific details. The Board is conducting a transparent search for the right candidate, and the results will be disclosed to stock exchanges first."

4. Renish: "What is the expected NIM trajectory for the next two quarters?"

   Vinay Gupta: "We expect NIM to be range-bound between 3.6% to 3.7% for the year. While we will see benefits from lower borrowing costs, the mix being in favor of Prime and Emerging segments will still impact NIM."

5. Renish: "Can you share insights about the spike in delinquency rates in the affordable segment?"

   Valli Sekar: "The spike is due to the portfolio's maturation and the company moving into high yield products in tier-3 and tier-4 markets. The first quarter had cyclical issues impacting performance, and this variance is expected."

6. Prithviraj Patil: "What is the status of the asset pool pending recovery?"

   Jatul Anand: "The write-off pool is close to INR 1,000 crores"”INR 675 crores from Corporate loans and the rest from Retail. Recoveries have been steady, and we expect credit costs to remain in the current range for now."