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Informist, Tuesday, Aug. 25, 2026

 

--ICRA upgrades PNB Housing NCDs, loans to AAA from AA+ 
 

NEW DELHI – ICRA Ratings has upgraded the rating of PNB Housing Finance Ltd.'s non–convertible debentures worth INR 5 billion to "AAA" from "AA+" with "stable" outlook, the non-banking financial company said Tuesday. The rating agency also upgraded the rating on the company's long-term bank facilities to "AAA" from "AA+".

 

The rating upgrade reflects the strengthening of PNB Housing Finance's credit profile over the last few years, driven by improved asset quality and its shift towards a more granular, retail-focused mortgage franchise, ICRA said.

 

PNB Housing Finance is one of the largest housing finance companies in India with assets under management of INR 930.21 billion as of Jun. 30. It has shown sustained growth in its core housing portfolio while maintaining adequate profitability, the rating agency said. ICRA also factored in the company's comfortable capitalisation, diversified funding profile, and adequate liquidity. PNB Housing Finance had a net worth of INR 197.94 billion and a capital adequacy ratio of 28.3% as on Jun. 30.

 

The rating continues to factor in continued support from Punjab National Bank, given its stated intent to remain the sole promoter and extend financial and other support as and when required, within the regulatory framework. Punjab National Bank is expected to maintain its near 28% stake in the housing financier. The company also benefits from the shared brand name, which helps it to leverage its franchise and raise funds, thereby supporting financial flexibility, the rating agency said.

 

Factors that could lead to a downgrade include a significant deterioration in PNB Housing Finance's asset quality. A weakening in Punjab National Bank's credit profile, a change in its support philosophy towards the company, or a stake sale could also negatively impact the rating. Positive factors are not applicable as it is at the highest rating level, the agency said.

 

For the June quarter, the housing finance company's consolidated net profit rose 4.5% on year to INR 5.57 billion on total income of INR 22.65 billion. Tuesday, its shares ended at INR 1,182, up 1.5% from Monday, on the National Stock Exchange.  End

 

Reported by Vaishali Tyagi

Edited by Himanshi Gupta

 

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