PNB Housing Finance Limited said its net interest margin may improve by 5-8 basis points following the Reserve Bank of India's 25-basis-point rate hike, and said Crisil upgraded its rating to AAA/Stable from AA+/Stable, giving it AAA ratings from all four leading domestic agencies and expected to lower borrowing costs on bank term loans.

PNB Housing Finance expects a 10-15 basis point long-term reduction in its cost of funds after Crisil, CareEdge, ICRA and India Ratings upgraded it to AAA, with the benefit to accrue gradually on fresh borrowings through more competitive rates and wider funding access.