8 months ago
PNB Housing recovers after CEO change
PNB Housing Finance, a company that gives out home loans, had a tough time when its CEO suddenly quit.
The stock price dropped a lot, but after a new CEO, Ajai Kumar Shukla, took over, things started to get better.
The company's profits and the quality of its loans improved.
They are now focusing more on affordable housing, which is growing fast but has some risks.
The stock price is almost back to where it was before the CEO left, and the company is doing well overall.
PNB Housing Finance's stock recovered after the appointment of new CEO Ajai Kumar Shukla.
The company's return on equity (RoE) reached 13% in Q2FY26, the highest since FY21.
Asset quality improved with gross and net stage-3 assets declining to 1% and 0.7% respectively.
The company is focusing on affordable and emerging housing segments for growth.
PNB Housing aims to achieve ₹1 trillion in assets under management (AUM) by FY27.
- Who
- PNB Housing Finance Ltd, led by new CEO Ajai Kumar Shukla
- What
- Recovery of stock and improved financial performance after CEO change
- Where
- India
- When
- Q2FY26 (September quarter)
- Why
- Strategic focus on growth and asset quality, shift towards affordable housing segments
Key facts
- Current Stock Price
- ₹962
- Return on Equity (Q2FY26)
- 13%
- Return on Assets (Q2FY26)
- 2.73%
- Gross Stage-3 Assets (Q2FY26)
- 1%
- Net Stage-3 Assets (Q2FY26)
- 0.7%
- Net Interest Margin
- 3.7%
- Prime Housing Contribution to AUM
- 60%
- Projected AUM Growth (FY26)
- 17-18%
- Credit Rating
- AAA (upgraded from AA+)
- Expected RoA (FY26)
- 2.5%
- Expected RoA (FY27)
- 2.2%
- Affordable Housing AUM Growth (Q2FY26)
- 121% year-on-year
- Gross NPA in Affordable Housing (Q2FY26)
- 0.51%
- Early-bucket Delinquencies in Affordable Housing (Q2FY26)
- 1.40%
Sources
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