PNB Housing Finance Limited — Credit Ratings, 05-07-2025: Credit Rating

CARE Ratings has reaffirmed PNB Housing Finance Limited’s credit ratings at ‘CARE AA+; Stable’ for its long-term instruments and ‘CARE A1+’ for its short-term facilities. The reaffirmation reflects PNBHFL’s strong market position as the third-largest housing finance company with an AUM of ₹80,397 crore, improved profitability (RoTA of 2.5% in FY25), and a comfortable capital structure with a gearing of 3.7x. The diversified borrowing profile and demonstrated resource-raising ability support financial flexibility. However, elevated short-term borrowings have led to negative cumulative mismatches in asset-liability maturity beyond six months, making long-term funding and ALM management key liquidity monitorables. Asset quality continues to improve with GNPA below 2%, supported by adequate provision coverage. The stable outlook indicates expectations of sustained growth, profitability, and asset quality.