PNB Housing Finance Q3 Results: Profit Rises 27%

PNB Housing Finance Ltd.'s third-quarter profit rose in line with analysts' estimates, on account of significant fall in impairment on financial instruments and write-offs.

The company's standalone net profit rose 27.2% year-on-year to Rs 346.5 crore for the quarter ended December, according to an exchange filing on Wednesday. Analysts polled by Bloomberg estimated a consolidated net profit of Rs 360.10 crore.

In the quarter ended September, the bottom line stood at Rs 384.40 crore.

• Total income down 2.02% at Rs 1,751.5 crore.

• Interest income down to Rs 1,672.85 crore vs Rs 1,707.05 crore.

• Net profit up 27.2% at Rs 346.5 crore. (Bloomberg estimate: Rs 360.10 crore).

The amount of loan assets written off stood at Rs 59.10 crore in the third quarter, as compared with Rs 254.8 crore in the year-ago period. Lower write-offs mean lower provisions for the lender.

The net interest income shrank 19% to Rs 595 crore. On a quarterly basis, the NII fell 10%. The net interest margin, a key measure of profitability, stood at 3.65%.

The asset quality improved as the gross non-performing assets narrowed to 1.73% of the gross advances from 1.78% in the previous quarter. The net NPA ratio shrank to 1.14% as compared with 1.19% in the September quarter. This was due to recoveries, write-offs and sale of delinquent assets to asset reconstruction companies, the housing finance company said in an investor presentation.

The loan book grew 7.4% to Rs 62,337 crore, driven by retail loans. However, the corporate loan book fell 48%. Credit costs stood at 0.34% as of Dec. 31, as against 0.26% in the previous quarter. 

The asset under management increased 4.3% to Rs 68,549 crore. Sequentially, the AUM fell 1.7%.

PNB Housing's stock closed 0.70% lower at Rs 858.30  apiece on the BSE as compared with a 0.98% advance in the benchmark Sensex. The results were announced after market hours.