Mumbai, Nov. 18 -- India Ratings and Research stated that the upgrade reflects the agency's expectation of PNB Housing Finance (PNBHF) receiving timely support in terms of liquidity and equity from Punjab National Bank (PNB), with PNB maintaining its stake in PNBHF and sharing the brand name.

The rating also reflects PNBHF's position among India's top housing financiers, having seen multiple business cycles.

Moreover, PNBHF has demonstrated consistent improvement in profitability and asset quality and has achieved granularisation of the loan book. It has raised funding at competitive rates and maintained adequate liquidity buffers.

India Ratings expects the entity's credit cost to remain modest in the near to medium, given the tightene...