PNB HFC Q1 net down 3% YoY, corporate loan pre-payments hit income

PNB Housing Finance’s net profit for June 2022 quarter (Q1FY23) declined three per cent to Rs 235 crore year-on-year (YoY) as net interest income dipped. Sequentially, net profit was down 39 per cent quarter-on-quarter (QoQ) over March 2022 (Q4FY22).

Net Interest Income declined by 33 per cent YoY and two per cent QoQ to Rs 370 crore on account of reduction in corporate book. Net Interest Margin (NIM) stood at 2.4 per cent in Q1 FY23 down compared to 3.2 per cent a year ago in Q1FY22. It was up QoQ from 2.3 per cent in Q4 FY22, said the company in a statement.

The stock closed 1.63 per cent higher at Rs 352.15 per share on BSE.

Disbursements during reporting quarter almost doubled to Rs 3,451 crore compared to Rs 1,759 crore in Q1FY22. Retail disbursement was 98 per cent of total disbursements in Q1 FY22-23. The Delhi-based mortgage lender is ramping up retail especially affordable housing loan book and scaled-down corporate loan portfolio.

Loan asset declined to Rs 56,301 crore as June 30, 2022 from Rs 60,438 crore a year ago and Rs 56,889 crore as March 31, 2022. The retail loan book grew to Rs 50,295 crore at end of June 2022 compared to Rs 49,450 crore in June 2021 and Rs 49,730 crore as end-March 2022.

The company’s corporate loan portfolio fell to Rs 6,006 crore at end-June 2022 from Rs 10,989 crore at end of June 2021. The corporate loan book contracted on account of accelerated pre-payment and pre-closures, said the statement.

The Gross Non-Performing Assets (as per IndAS) reduced marginally to 6.35 per cent as end June 2022 from 6.4 per cent year ago and 8.12 per cent at end of March 2022.

The company’s Capital Adequacy Ratio (CAR) stood at 23.9 per cent as of June 2022 up from 21.4 per cent at the end of June 2021.