PNB Housing Finance Q2 results: Net profit rises 45.8% to Rs 383 crore

PNB Housing Finance’s consolidated net profit rose by 45.83 per cent to Rs 383 crore for the second quarter of financial year 2024 from Rs 262.63 crore during second quarter of financial year 2023. The growth is attributed to healthy expansion in loan book and improving asset quality.

The net interest income (NII) inched 1.85 per cent up to Rs 661 crore from 649 crore. The Net Interest Margin (NIM) slipped down to 3.95 per cent from 4.14 per cent in Q2FY23.

In the reported quarter, there was a one-off of Rs 160 crore on assigned loans due to resets in the benchmark interest rate. Excluding this one-off, the NII of the housing financer rose by 35 per cent from the year ago period.

The total loan book, comprising retail and corporate assets rose by 5.22 per cent to Rs 60852 crore from Rs 57832 supported by robust expansion in the retail loan assets.

Retail loan assets which accounts for the major chunk of the total portfolio grew by 12.18 per cent higher than Rs 58471 crore from Rs 52124 crore in the year ago period. The company further said that it will focus on accelerating growth in retail lending.

The total disbursements of the company increased by 18.06 per cent to Rs 4165 crore from Rs 3528 crore in Q2FY23,

The gross non-performing assets (GNPA) was posted at 1.78 per cent as on September 30, 2023 from 3.76 per cent as on June 30, 2023 owing to a recovery on a large corporate account during the quarter.

“Our consistent efforts have enabled us to resolve and fully recover a large corporate account, which further aided in reducing our GNPA below 2% to 1.78% as on 30th Sept 2023,” said Girish Kousgi, Managing Director & CEO of PNB Housing Finance.

The operating expenditure of the company rose by 24 per cent to Rs 168 crore from Rs 136 crore in the year ago period.

Its capital adequacy ratio stood at 30.38 per cent in Q2FY24 of which Tier I capital is 28.50 per cent.