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Mortgage major PNB Housing Finance is eyeing growth in higher yielding affordable housing and emerging market loan segments in H2FY26, and is expecting corporate loan disbursals to start happening in the same period, senior management of the housing finance company (HFC) told businessline. “We are inching up our emerging and affordable housing loan book mix every quarter. Last quarter, these two segments comprised 37 per cent of our retail loan book, this quarter they stood at 38 per cent, and we expect the two segments to touch 40 per cent by FY26-end. By FY27-end, we expect these two segments to form 42-45 per cent of retail book,” said Vinay Gupta, Chief Financial Officer (CFO), PNB Housing Finance. PNB Housing Finance’s overall retail loan book stood at ₹79,439 crore as on September end, up 17 per cent year-on-year (y-o-y), with prime loans having the largest share of ₹48,914 crore. Its corporate loan book stood at ₹332 crore, down 78 per cent y-o-y, with the HFC not disbursing any corporate loan in H1FY26. “Corporate business has kicked up, We have started again and have couple of proposals sanctioned. But you would appreciate that these are large ticket loans, lets say between ₹100 crore to ₹200 crore, and these cases require a lot of due-diligence before disbursements. But we would see some happening disbursements in H2FY26,” said Jatul Anand, Executive Director. Asset quality, spreads The HFC expects to close the current fiscal with negative to very low credit cost in the current fiscal on account of better repayment trends and anticipated recoveries from written-off accounts. Its credit cost stood at 0.53 per cent in Q2. “We have been working very strongly on our collections and you must have seen sequential decline in NPAs. This quarter, too, the strength continues. We are at 1.04 per cent GNPA (gross NPA ratio) in Q2, lower 2 basis points (bps) sequentially, and our collection efficiencies are improving and lot of steps have been taken in this regard. Our asset quality should remain stable from hereon,” said Anand. The HFC’s interest spread have been holding at around 2.26 per cent in H1 but net interest margin (NIM) declined slightly on account of lower yield on investments, Gupta said. “NIM decline was basically due to lower investment yields but on business side, our spread and yields are holding. Considering the current competitive environment, NIM will remain under pressure. We expect NIM to be in the range of 3.6-3.7 per cent for H2FY26,” he added. According to Anand, the HFC could appoint a new MD, CEO within a month as the board has extensively reviewed both internal and external candidate applications. The HFC’s former CEO Girish Kousgi resigned from the company earlier this year citing personal reasons. “My guess is that within a month it should be done. Meanwhile, equally important is the way this company is being run in the interim. We have performed well across parameters, delivering satisfaction to all stakeholders.” Published on October 29, 2025
