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JPMorgan Reveals Top NBFC Picks: PNB Housing Finance and IIFL Finance Lead the Pack
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CNBC TV18•29-09-2026, 11:07
JPMorgan Reveals Top NBFC Picks: PNB Housing Finance and IIFL Finance Lead the Pack
- •JPMorgan maintains PNB Housing Finance as its top pick in housing finance and IIFL Finance as its preferred gold lender.
- •Key takeaways from management meetings include liquidity flows, interest rates, market-share gains, and asset quality.
- •JPMorgan estimates PNB Housing Finance's net interest margin (NIM) could improve by 10 basis points with a 3-5% EPS rise for every 25 basis points increase in policy rate.
- •IIFL Finance has limited scope to pass on higher interest rates to gold loan borrowers, according to JPMorgan.
- •NBFCs continue to gain market share in both housing finance and gold loan segments, with strong asset quality overall, except for micro-LAP risks.
Key Questions Answered
JPMorgan named PNB Housing Finance as its top pick among housing finance companies and IIFL Finance as its preferred stock among gold lenders.
For PNB Housing Finance, JPMorgan estimates that every 25 basis points increase in the policy rate could improve net interest margins by about 10 basis points and raise earnings per share by 3-5%. However, for IIFL Finance, the brokerage sees limited scope to pass higher interest rates on to gold loan borrowers.
For PNB Housing Finance, 13 of 15 analysts have a 'Buy' rating, and its shares traded 1.65% higher at ₹1,102.90, gaining 12% for the year. For IIFL Finance, seven of eight analysts maintain a 'Buy' rating, while its shares were down 1.18% at ₹591.10, showing a 5% decline year-to-date.
