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PNB Housing Finance’s net profit increased 47.8 per cent year-on-year (YoY) to Rs 347 crore in the first quarter (April-June) of FY24 on the back of improved net interest income.
The housing finance company’s net profit stood at Rs 235 crore in the June quarter of FY23 and Rs 279 crore in the fourth quarter of FY23.
The housing finance company’s total income during the June quarter was Rs 1,708 crore against Rs 1,412 crore a year ago, the lender said in an exchange filing.
“CARE Ratings has upgraded the outlook on various financial facilities/instruments to ‘positive’ from ‘stable’ in June 2023 and reaffirmed the rating at CARE AA,” it added.
The bank’s asset quality improved, with gross NPAs as a percentage of gross advances dropping to 3.76 per cent in Q1 of FY24 from 3.83 per cent in the March quarter. Net NPAs stood at 2.59 per cent as on June 30.
Girish Kousgi, managing director and chief executive officer of PNB Housing Finance, said the first quarter of this financial year kick-started on a positive note, as the company achieved growth across all key business and financial parameters.
“With the successful completion of the rights issue, we possess adequate capital to fuel our growth. We are optimistic about the prevailing real estate demand, and with our focus on identified strategic objectives, we look forward to capitalising on available market opportunities and accelerating our growth journey ahead,” he added.
Its net interest income (NII) expanded by 70 per cent YoY to Rs 629 crore in the reporting quarter. Net interest margin stood at 3.86 per cent in Q1FY24, up from 3.74 per cent in the previous quarter.
Loan assets stood at Rs 60,395 crore at the end of first quarter registering 5 per cent growth YoY. Retail loan assets grew by 11 per cent YoY to Rs 56,978 crore as on June 30, which is 94 per cent of loan assets.
The capital adequacy ratio (CAR) of the company was at 29.93 per cent as on June 30, comfortably above the regulatory requirement.
