PNB Housing Profit Jumps 24% — Aims to Give Out More Loans This Year

The lender shows sharp growth, focusing more on affordable loans and retail expansion.

Have you noticed how home loans in small towns are getting quicker? No long queues, less paperwork. That’s where PNB Housing is placing its bets. In its latest report, released on 27 October 2025, the company posted a 24% rise in net profit for the July–September quarter, touching ₹582 crore.

Not just profit. Their loan book is changing too.

What’s Driving PNB Housing’s Impressive Growth This Quarter?

The PNB Housing Finance quarterly profit growth didn’t come out of thin air. The company’s affordable housing loan assets went up sharply, more than doubling in one year. From a smaller base, yes, but the jump is strong. In the same quarter, they disbursed ₹823 crore in this segment, which is a 31% rise compared to last year.

And they’re not stopping there. Expansion into more cities, mainly tier-2 and tier-3 areas, is underway. Their focus is shifting towards loans that are small but steady, less flashy, more reliable.

Some of these numbers tell the story better.

Loan Performance Snapshot (Q2 FY26)

The shift shows their PNB Housing lending expansion strategy is working. The more they lend in smaller chunks, the more their returns seem to balance out.

What Does Affordable Lending Really Mean for PNB Housing?

Affordable housing finance refers to home loans usually under ₹25 lakh, often taken by salaried or self-employed buyers in smaller towns. These loans come with lower risk and are sometimes linked to government support like PMAY subsidies.

This space is growing. Fast.

As per a report from The Economic Times in August 2025, PNB Housing plans to increase the share of these loans to 50% of their total by FY27. That target is not far, looking at the current pace.

Even in Q1 FY26, they were already going in that direction. Retail loan assets had touched ₹76,923 crore back then. Affordable loan growth? 143%. That earlier coverage, by Livemint in July 2025, pointed to the same pattern: retail is rising quietly.

Let’s compare both quarters.
 

See the pattern? It's growing, step by step.

Is PNB Housing Quietly Winning the Small-Town Loan Race?

LIC Housing, HDFC, even some public banks, have been talking about affordable home loans for years. But PNB Housing seems to be acting faster now.

The National Housing Bank report from September 2025 noted a 9% rise in retail housing demand. It didn’t name lenders, but the trend is visible. The environment’s changing.

Earlier, companies chased big loans in metros. Now, they’re splitting those into many smaller loans, spreading risk. Safer, and steadier. That’s what the Indian housing finance company profit rise is reflecting.

According to an industry commentary via LoansJagat, the broader credit‑growth environment is turning more favourable: “Nomura has projected that India’s system credit (loan) growth will accelerate to around 12 % year‑on‑year in FY26.

Conclusion 

So, PNB Housing increases loan distribution plans, but with a different mindset now. Less on bulk, more on access. The PNB Housing financial performance 2025 is showing how a traditional lender can change its direction, quietly, with results that matter.

Feels like they’ve found their rhythm. Let’s see how far it takes them.
 

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