PNB Housing Finance’s shares surged 8.33% after announcing strong results for the fourth quarter (Q4) of FY25, with a net profit of ₹550 crore, reflecting a 25% year-on-year (YoY) growth. The company’s net interest income (NII) grew by 16.2% YoY and 5.5% quarter-on-quarter (QoQ) to ₹734 crore, while the net interest margin (NIM) improved to 3.75% from 3.70% in the previous quarter and 3.65% in Q4 FY24. Operating expenses rose by 18.2% YoY and 2.6% QoQ to ₹208 crore, while pre-provision operating profit increased by 14.1% YoY and 11.5% QoQ to ₹646 crore. The company’s credit cost turned positive at -0.32% due to recoveries from previous write-offs. For FY25, PNB Housing Finance reported a net profit of ₹1,936 crore, up 28.4% from ₹1,508 crore in FY24. Net interest income for the full year grew by 9.3% YoY, and retail segment income rose by 15%. The company’s operating expenses increased by 21.3% YoY, reaching ₹799 crore, and pre-provision operating profit grew by 9.5% to ₹2,328 crore.
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The return on assets (ROA) improved to 2.55%, and return on equity (ROE) was 12.19%. Asset quality also showed improvement, with gross non-performing assets (NPA) reducing to 1.08% from 1.50% last year. Disbursements for FY25 increased by 25% YoY to ₹21,972 crore, with loan assets growing 16% YoY to ₹75,765 crore. The company has recommended a dividend of ₹5 per share for FY25.
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CEO Girish Kousgi highlighted that the company had surpassed its growth, asset quality, and profitability targets for the year, and will continue to focus on profitable growth while maintaining strong asset quality. PNB Housing Finance, promoted by Punjab National Bank, operates 356 branches and outreach locations and specializes in home loans, loans against property, and loans for non-residential properties.
