PNB Housing Finance Share Price After Strong Q3 FY25 Results, Shares Rally Over 4%

Market Performance

On January 22, PNB Housing Finance’s shares surged by over 4% during early trading, reaching a high of ₹935 on the BSE. Despite the initial rally, profit booking declined, with shares trading 3.59% lower at ₹865.95 by mid-morning.

Q3 FY25 Results Overview

The company, a non-banking finance entity backed by Punjab National Bank (PNB), reported notable improvements in its financial metrics:

• Net Profit: ₹483 crore, a 43% increase compared to ₹338 crore in Q3 FY24.
• Net Interest Income (NII): ₹695.7 crore, reflecting a 17% YoY growth and 4.1% QoQ rise. Retail segment NII grew 17.4% YoY.
• Net Interest Margin (NIM): Improved to 3.70% from 3.68% in the previous quarter and 3.49% YoY.
• Pre-Provision Operating Profit: ₹579.5 crore, up 16.1% YoY and 3.7% QoQ.

Operational Highlights

• Disbursements: Increased by 29.9% YoY to ₹5,380 crore in Q3 FY25.
• Loan Assets: Rose 15.4% YoY to ₹71,917 crore as of December 31, 2024.
• Asset Quality: Gross Non-Performing Assets (GNPA) improved to 1.19% from 1.24% in the previous quarter and 1.73% YoY.
• Cost of Borrowing: Reduced slightly to 7.83% in Q3 FY25 compared to 8.07% YoY.

Company Developments

The company continued to strengthen its financial position:

• Received National Housing Bank (NHB) refinance sanction of ₹5,000 crore.
• Secured an external commercial borrowing (ECB) sanction of USD 100 million.
• Achieved immense growth in the affordable housing segment, with disbursements increasing 127% YoY to ₹920 crore.

Summary

PNB Housing Finance demonstrated strong growth and operational improvements in Q3 FY25, driven by increased profitability, better asset quality, and strategic financing initiatives. While the stock experienced initial gains, market fluctuations led to subsequent corrections. The company’s performance reflects resilience and steady progress in key financial metrics.