PNB Housing Finance Sees 5–8 bps NIM Expansion from RBI Rate Hike, Clinches Quadruple ‘AAA’ Rating Sweep: MD & CEO Ajai Shukla

Speaking to PTI, PNB Housing Finance Managing Director and CEO Ajai Kumar Shukla stated that the company expects a 5 to 8 basis points (bps) improvement in its Net Interest Margin (NIM) as the rate adjustment permeates the mortgage book.

Asymmetric Transmission and Liability Diversification

Explaining the structural drivers behind the margin accretion, Shukla pointed out that while asset yields adjust upward, the company's liability profile is insulated from a 1:1 repo transmission:

1. Non-Repo Liability Composition: "Some benefit will go to the lender because all of the borrowing of the lender is not on the repo rate. It is a combination of Marginal Cost of Funds-based Lending Rate (MCLR), commercial paper, refinance from National Housing Bank (NHB), and non-convertible debentures (NCDs)," Shukla explained.
2. 5–8 bps Net Margin Accretion: While the full 25 bps increase does not flow directly onto the balance sheet immediately, the lag and diversification create a net positive spread of 5–8 bps on the loan book.