Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, surged 8.2%, coming at ₹796 crore against ₹736 crore in the corresponding quarter of FY25.
The company’s assets under management (AUM) crossed ₹90,000 crore, reaching ₹90,921 crore as of FY26, reflecting a 13% year-on-year growth. Retail loan assets grew 16% year-on-year to ₹86,946 crore as on March 31, 2026, accounting for 99.5% of the total loan asset base. The affordable and emerging markets segment expanded 28% year-on-year and contributed 40% to the retail loan asset portfolio.
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Overall disbursements in Q4FY26 increased 36% year-on-year and 50% quarter-on-quarter to ₹9,355 crore, including ₹335 crore from the re-entry into the corporate lending segment. Retail disbursements reached an all-time high of ₹9,020 crore during the quarter. Net profit for Q4FY26 rose 19% year-on-year to ₹656 crore, while FY26 net profit increased 18% to ₹2,291 crore, driven by improvement in operating leverage.
Spreads during the quarter moderated by 10 basis points sequentially to 2.12% due to a 25 basis point softening in yield to 9.47%, reflecting lower incremental yield compared to book yield. Cost of borrowing improved by 15 bps sequentially to 7.35%. Net interest margin increased by 6 bps to 3.69% in Q4FY26 compared to 3.63% in the previous quarter.
Asset quality improved, with gross NPA (GNPA) declining below 1% to 0.93% as on March 31, 2026. Recoveries from the written-off pool of ₹332 crore in FY26 resulted in a negative credit cost of -0.45%. Return on assets improved by 10 basis points year-on-year to 2.66%, while return on equity rose by 54 basis points to 12.73%.
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The total number of branches stood at 393 as on March 31, 2026, with 37 additions during FY26. Capital adequacy ratio was at 27.26%, with tier I at 26.89%.
The board recommended a dividend of ₹8 per equity share of face value ₹10 for FY26, subject to shareholder approval at the ensuing annual general meeting.
Ajai Shukla, Managing Director and CEO, said, “FY2025-26 marked a year of resilient and balanced growth for the Company, reflecting the strength of our strategy and focused approach. We delivered a healthy expansion in our retail loan portfolio, along with sustaining robust asset quality and profitability.”
“The continued focus on disciplined collections and portfolio management resulted in GNPA improving to sub-1% levels. Our return on assets improved during the year, supported by strong financial performance and prudent management practices.”
Shares of PNB Housing Finance Ltd ended at ₹905.80, down by ₹18.60, or 2.01%, on the BSE today, April 20.
