PNB Housing Finance Raises Rs 400 Crore Through NCDs
By Ankur Chandra | Published at: Jul 23, 2025 04:05 PM IST
New Delhi, July 23, 2025: PNB Housing Finance Ltd (NSE: PNBHOUSING) has raised Rs ₹400 crore through non-convertible debentures (NCDs) in its latest private placement round, according to a regulatory disclosure filed today.
The company’s management committee approved the allotment of 40,000 listed, secured, rated, taxable, redeemable NCDs, each having a face value of ₹1 lakh. The debentures form part of the “PNB Housing Finance Limited 2030 Series LXX”, carrying a coupon rate of 7.4342% per annum.
Post the announcement, the shares of the company fell by 2.73% or ₹29.70 and were trading at ₹1,056.90 as of 1:35 PM.
NCD Allotment Snapshot
| Parameter | Details |
|---|---|
| Number of NCDs | 40,000 |
| Face Value per NCD | ₹1,00,000 |
| Total Issue Size | ₹400 crore |
| Coupon Rate | 7.4342% per annum |
| Tenure | 5 years |
| Date of Allotment | July 23, 2025 |
| Maturity Date | July 23, 2030 |
| Listing | NSE Wholesale Debt Market (WDM) Segment |
| Type | Secured, Rated, Redeemable, Taxable NCDs |
Repayment Terms
| Payment Type | Dates |
|---|---|
| Interest | July 23 of each year from 2026-2030 (except 2028: July 24) |
| Principal | July 23, 2030 |
The interest payout is structured annually, with the final instalment aligning with the redemption date. The NCDs are secured by an exclusive charge on specific book debts, ensuring a minimum security coverage of 1x. In case of payment defaults, the company is liable to pay an additional 2% p.a. over and above the coupon rate for the duration of the default period.
Financial and Credit Highlights
PNB Housing Finance has reported a 23% increase in its net profit to ₹534 crore for the first quarter ended June 2025, compared to ₹433 crore in the same quarter of the previous year. The company’s total income for the quarter grew to ₹2,082 crore from ₹1,832 crore in the corresponding quarter of the previous fiscal year.
The company’s robust Q1 FY26 performance is driven by strong home loan demand, particularly in the retail segment. Retail disbursements grew by 14% year-on-year to ₹4,980 crore, with significant contributions from the affordable and emerging markets segments (30% disbursement growth in these segments, collectively contributing 50% to retail disbursement). The company has also demonstrated improved asset quality with a reduction in both Gross and Net NPAs. Its strong capital adequacy ratio provides a solid foundation for future growth.
PNB Housing Finance has maintained strong credit ratings from major agencies. As of 27 May 2025, CRISIL reaffirmed its long-term debt instruments, Fixed Deposits, Lower Tier II Bonds, and Non-Convertible Debentures to ‘CRISIL AA+/Stable’, and its short-term bank facilities and Commercial Paper to ‘CRISIL A1+’. Similarly, CARE Ratings reaffirmed its long-term ratings at ‘CARE AA+; Stable’ and short-term ratings at ‘CARE A1+’ on 4 July 2025. These strong ratings reflect the company’s robust capitalisation, established market position, comfortable earnings profile, and the brand-sharing benefits it derives from its promoter, Punjab National Bank.
The P/E Ratio of the company is 13.87 against an industry P/E of 22.03.
What Does This Mean For The Investors?
For investors, PNB Housing Finance’s ₹400 crore NCD issuance at 7.4342% reflects a strategic move to secure low-cost, long-term funding amid strong Q1 FY26 performance. While the slight dip in share price may indicate short-term concerns about rising liabilities, the fundamentals remain solid-net profit rose 23% YoY, disbursements grew, asset quality improved, and credit ratings were reaffirmed at AA+/Stable. For fixed-income investors, the secured, rated NCDs offer a predictable annual return with low default risk. For equity investors, the company’s healthy capital adequacy and strong retail growth outlook support long-term confidence.
What’s Ahead?
Looking ahead, PNB Housing Finance appears well-positioned to capitalise on sustained demand in the retail housing loan segment, especially within affordable and emerging markets. The ₹400 crore NCD issuance strengthens its liquidity position and signals confidence in future lending growth. With a strong capital adequacy ratio and improving asset quality, the company may continue expanding its loan book without compromising stability. However, investors should monitor rising interest rates and funding costs, which could pressure margins. Overall, the outlook remains positive, supported by solid fundamentals and strong credit ratings.
About the Company
PNB Housing Finance Ltd, a listed entity on NSE and BSE, is one of India’s prominent housing finance companies offering retail and corporate loans. Headquartered in New Delhi, it operates under the regulatory framework of the National Housing Bank and is promoted by Punjab National Bank.
REF:https://nsearchives.nseindia.com/corporate/PNBHOUSING_23072025132113_SE_intimation_Allotment_of_NCD_LXX_Jul_23_2025_Fsdd.pdf
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