PNB Housing Finance plans to raise its share of high-yielding loans mainly affordable and emerging housing to 50% of its loan book by FY27, aiming to improve margins and profits.

The lender targets a 19% CAGR in total loans and an 18% CAGR in profit after tax from FY25 to FY27. Management expects net interest margins (NIM) to hold steady around 3.6–3.65% in FY26, rising above 4% by FY27 through better mix and disciplined pricing. 

To reach that target, the bank is increasing retail lending by focusing on affordable and emerging segments—currently 26% of loans, projected to grow to 40–50% by FY27. It plans annual retail growth of around 18% and is reopening small corporate loans to boost blended yields. With a broader branch network—356 now, aiming for 500 by FY27—the bank will add 50–60 branches yearly, mostly catering to affordable housing. Operating costs are expected to remain under control, around 1–1.1% of assets.

Analysts at Motilal Oswal, UBS, and others rate the stock as "Buy" with a target price near ₹1,230–1,300, citing its shift to higher-yield segments, asset-quality improvements, and upside potential 

Business Today. Overall, PNB Housing’s shift toward profitable loan categories, cost discipline, and steady growth makes it attractive with improved margins likely in coming years.