PNB Housing Finance Q2 Results: Profit Up 23%, Asset Quality Improves

PNB Housing Finance reported a net profit of Rs 470 crore for the quarter ended September, up 23% year-on-year and 9% on a sequential basis to Rs 472 crore, led by improvement in asset quality.

The gross non-performing assets ratio of the company was 1.24% as of September, lower than 1.35% a quarter ago and 1.78% a year ago. Net NPA also improved to 0.84% as against 0.92% a quarter ago and 1.19% a year ago.

Healthy growth in assets under management also aided its bottomline. AUM recorded a growth of 11% on year and 3% on quarter to Rs 74,724 crore.

PNB Housing Finance Q2 Highlights (Consolidated, YoY)

• Total income rises 5.7% at Rs 1,869 crore versus Rs 1,768 crore.

• Net profit rises 22.7% at Rs 472 crore versus Rs 384 crore.

Meanwhile, retail disbursements grew by 28% on year to Rs 5,341 crore. Of this, affordable and emerging markets accounted for 31%.

As of Sept. 30, retail loan assets were Rs 67,970 crore. Affordable and emerging markets form 23% of the retail loan asset.

Corporate loans fell 36% on year to Rs 1,531 crore at the end of Sept. 30.

Slower growth in the non-bank lender's net interest income was due to the declining impact of its corporate book. The NII rose 1.2% on a yearly basis and 2.7% quarter-on-quarter to Rs 669 crore.

Additionally, the net interest margin of the housing financier was 3.68% in the September quarter as compared to 3.65% a quarter ago and 3.95% a year ago.

With recovery from the retail written-off pool, the credit cost of the housing financier was down by 24 basis points in the September quarter as compared to a 7 bps fall a quarter ago and a 26 bps rise a year ago.

During Jul-Sep, PNB Housing Finance recovered Rs 48 crore from the retail written-off pool.