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Informist, Wednesday, Jan. 21, 2026

By Durgesh Nandan

MUMBAI – PNB Housing Finance Ltd.'s consolidated net profit for the December quarter grew at the slowest on-year pace in 14 quarters because of weaker rise in revenue from operations and a jump in employee benefits expenses. The net profit fell sequentially as bad debt recovery more than halved during the quarter.

The housing finance company's consolidated bottom line for the reporting quarter rose nearly 8% on year to INR 5.20 billion. At 8%, the rise in net profit was the slowest since the June quarter of 2022. The net profit was also lower than analysts' estimate of INR 5.44 billion.

Sequentially, the net profit fell 10.5% because of lower bad debt recovery. The company recovered bad debts worth INR 405 million in the December quarter, under the impairment on financial instruments and write-offs head, against a recovery of INR 1.13 billion in the September quarter. Employee benefits cost over 36% on year, the biggest rise in eight quarters, to INR 1.34 billion. Sequentially, this was up 23%.

The company's revenue from operations rose over 9% on year to INR 21.19 billion from INR 19.42 billion but was marginally down on quarter. The growth in revenue from operations was the lowest five quarters. 

The company's other income rose over 21% on year to INR 16.4 million for the reporting quarter from INR 13.5 million. However, the other income fell over 40% sequentially.

The net interest income of the bank increased nearly 11% on year to INR 7.72 billion during the December quarter. The housing finance company's net interest margin fell to 3.63% in the December quarter from 3.67% in the September quarter and 3.70% in the year-ago quarter.

The lender's gross non-performing assets ratio was 1.04 % as on Dec. 31, unchanged from a quarter ago but down 1.19% from Dec. 31, 2024. The company's capital adequacy ratio was 29.46% as on Dec. 31, up from 28.8% a year ago. The company has considered the estimated impact of the new labour codes amounting to INR 60 million under employee benefit expenses in the financial statement for the quarter ended Dec. 31, it said in a press release.

The company's pre-provision operating profit was INR 6.28 billion, up 8.4% on year and down 2.9% on quarter. Excluding the new labour code impact, pre-provision operating profit grew 9.4% on year and 1.9% on quarter to INR 6.34 billion.

"As we move forward, our focus remains unwavering on strengthening our retail book with a sharper emphasis on the Affordable and Emerging Markets segment. We are committed to enhancing asset quality and sustaining profitability...," Ajai Shukla, managing director and chief executive officer of PNB Housing, said in the release.

The net profit for Apr-Dec rose 18% on year to INR 16.35 billion from INR 13.86 billion. The total income for the nine-month period rose 12% on year to INR 63.33 billion from INR 56.55 billion. The company declared its results after market hours Wednesday. Shares of PNB Housing ended nearly 2% lower at INR 930.55 on the National Stock Exchange.  End

Edited by Ashish Shirke

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