Credit Rating

Ref: PNBHFL/SE/EQ/FY2026-27/65 August 25, 2026 The BSE Limited The National Stock Exchange of India Limited Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Bandra Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400051 Mumbai – 400001 Symbol: PNBHOUSING Scrip Code: 540173 Dear Sir/Madam, Sub: Intimation of Credit Rating upgradation to ‘ICRA AAA/ Stable’ from ‘ICRA AA+/Stable’ by ICRA Limited This is to inform that ICRA Limited (“ICRA”) has upgraded rating of Company’s Non–Convertible Debentures (NCDs) and Bank Loans from ‘ICRA AA+’ to ‘ICRA AAA’ with stable outlook. The details of the ratings are as under: Instrument* Previous rated Current rated amount Rating action amount (Rs. crore) (Rs. crore) Long-term bank 10,000.00 10,000.00 [ICRA]AAA (Stable); f acilities Programme upgraded from [ICRA]AA+ (Stable) Non-convertible 500.00 500.00 [ICRA]AAA (Stable); debentures (NCDs) upgraded from [ICRA]AA+ (Sta ble) Total 10,500.00 10,500.00 *Instrument details are provided in Annexure 1. Detailed Rationale for the Rating Action The rating upgrade factors in the strengthening of PNB Housing Finance Limited’s (PNBHFL) credit profile over the last few years, supported by the improvement in its asset quality, and its transition towards a granular retail-focussed mortgage franchise. PNBHFL has an established track record in the mortgage finance industry and is one of the largest housing finance companies in India with assets under management (AUM) of Rs. 93,021 crore as on June 30, 2026. The company has demonstrated sustained growth in its core housing portfolio while maintaining adequate profitability. Further, its reported asset quality has improved over the years with the gross stage 3 assets (GS3) declining to 0.9% as of June 2026 from 1.1% as of March 2025 (1.5% as of March 2024, 3.8% as of March 2023). The rating also considers PNBHFL's comfortable capitalisation levels, diversified funding profile, and adequate liquidity position. It had a net worth of Rs. 19,794 crore, a capital adequacy ratio (CAR) of 28.3% and a managed gearing1 of 3.9 times as on June 30, 2026. The rating continues to factor in the continued support from Punjab National Bank (PNB; rated [ICRA]AAA (Stable)/[ICRA]A1+/[ICRA]AA+ (Stable) for Basel III Tier I bonds), given its stated intent to remain the company’s sole promoter and provide financial and other forms of support, when required, to the extent allowed within the regulatory guidance/framework. PNB is expected to maintain its current stake of ~28% in PNBHFL’s equity. The company also benefits from the shared brand name, which helps it leverage its franchise and raise funds, supporting its financial flexibility. For detailed rating rationale the letter of India Ratings is attached herewith as an Annexure - 2. Regd. Office: 9th Floor, Antriksh Bhawan, 22 K G Marg, New Delhi – 110 001 Phone: 011-66030500, E-mail: investor.services@pnbhousing.com, Website: www.pnbhousing.com CIN: L65922DL1988PLC033856 The above intimation and document shall also be made available on the website of the Company at https://www.pnbhousing.com/ This intimation is pursuant to Regulation 30, 51(2) and 55 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Kindly take the above intimation and documents on record. Thanking You, Yours faithfully, For PNB Housing Finance Limited Veena G Kamath Company Secretary Encl: As above. Regd. Office: 9th Floor, Antriksh Bhawan, 22 K G Marg, New Delhi – 110 001 Phone: 011-66030500, E-mail: investor.services@pnbhousing.com, Website: www.pnbhousing.com CIN: L65922DL1988PLC033856 Annexure 1 Instrument details: Sl. ISIN Instrument Date of Coupon Maturity Amount Current rating and No. name issuance rate rated outlook (Rs. crore) 1. INE572E07126 NCD Sep 6,2023 8.52% Sep 6, 2028 400 [ICRA]AAA (Stable) 2. Not issued NCD NA NA NA 100 [ICRA]AAA (Stable) 3. Not applicable Long-term NA NA NA 10,000 [ICRA]AAA (Stable) bank facilities (others) Regd. Office: 9th Floor, Antriksh Bhawan, 22 K G Marg, New Delhi – 110 001 Phone: 011-66030500, E-mail: investor.services@pnbhousing.com, Website: www.pnbhousing.com CIN: L65922DL1988PLC033856 August 25, 2026 PNB Housing Finance Limited: Rating upgraded to [ICRA]AAA (Stable) Summary of rating action Previous rated Current rated Financial sector Instrument* amount amount Rating action regulator# (Rs. crore) (Rs. crore) Long-term bank [ICRA]AAA (Stable); upgraded from 10,000.00 10,000.00 RBI facilities programme [ICRA]AA+ (Stable) Non-convertible [ICRA]AAA (Stable); upgraded from 500.00 500.00 SEBI debentures (NCDs) [ICRA]AA+ (Stable) Total 10,500.00 10,500.00 *Instrument details are provided in Annexure I # The Securities and Exchange Board of India’s (SEBI) grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments that fall under the regulatory purview of financial sector regulators (FSRs) other than SEBI Rationale The rating upgrade factors in the strengthening of PNB Housing Finance Limited’s (PNBHFL) credit profile over the last few years, supported by the improvement in its asset quality, and its transition towards a granular retail-focussed mortgage franchise. PNBHFL has an established track record in the mortgage finance industry and is one of the largest housing finance companies in India with assets under management (AUM) of Rs. 93,021 crore as on June 30, 2026. The company has demonstrated sustained growth in its core housing portfolio while maintaining adequate profitability. Further, its reported asset quality has improved over the years with the gross stage 3 assets (GS3) declining to 0.9% as of June 2026 from 1.1% as of March 2025 (1.5% as of March 2024, 3.8% as of March 2023). The rating also considers PNBHFL's comfortable capitalisation levels, diversified funding profile, and adequate liquidity position. It had a net worth of Rs. 19,794 crore, a capital adequacy ratio (CAR) of 28.3% and a managed gearing1 of 3.9 times as on June 30, 2026. The rating continues to factor in the continued support from Punjab National Bank (PNB; rated [ICRA]AAA (Stable)/[ICRA]A1+/[ICRA]AA+ (Stable) for Basel III Tier I bonds), given its stated intent to remain the company’s sole promoter and provide financial and other forms of support, when required, to the extent allowed within the regulatory guidance/framework. PNB is expected to maintain its current stake of ~28% in PNBHFL’s equity. The company also benefits from the shared brand name, which helps it leverage its franchise and raise funds, supporting its financial flexibility. However, the performance of the affordable housing finance (AHF) segment shall remain monitorable as this portfolio has grown at sharp rates in the recent past, leading to limited portfolio seasoning in relation to the contractual tenure of the loans. In addition, the company has recently recommenced the construction finance segment, with the portfolio currently remaining small; however, its scalability and asset quality performance will continue to be monitorable as the book seasons. The Stable outlook on the rating reflects ICRA’s expectation that PNBHFL would be able to maintain a steady credit profile as it continues to scale up its operations while maintaining prudent capitalisation. The company is expected to keep benefiting from its association and support from PNB as a promoter. 1 Managed gearing = (On-book debt + Off-book portfolio)/Net worth www.icra .in 1 Sensitivity Label : Public Page | Key rating drivers and their description Credit strengths Established player in mortgage lending market with healthy asset quality profile – PNBHFL is an established player with a long track record of operations in the housing finance industry and a presence in 21 states/Union Territories (UTs) in India. It is led by an experienced management team and board wit [Showing first 8,000 characters — download PDF for full document]