PNB Housing Finance witnessed a slight decline in its shares, dropping over 3 percent to the day’s low of Rs 694.2 apiece on the BSE on Wednesday, October 25, following the release of its September quarter results post-market hours on Monday.
During the July–September period, the company reported a 46 percent year-on-year (YoY) growth in Profit After Tax (PAT), amounting to Rs 383 crore. On a sequential basis, PAT increased by 10 percent. Net Interest Income (NII), the difference between the interest earned and expended, also saw a 2 percent YoY improvement and a 5 percent sequential growth, reaching Rs 661 crore.
The notable improvement in asset quality significantly contributed to the company’s positive performance. Gross Non-Performing Assets (GNPA) reduced from 3.76 percent in the quarter ended June 2023 to 1.78 percent in the recently concluded quarter. PNB Housing successfully recovered a substantial corporate NPA account, reducing the corporate GNPA from 24.99 percent to just 2.86 percent.
Motilal Oswal Financial Services, a domestic brokerage, upgraded PNB Housing Finance to ‘buy’ status with a revised target price of Rs 950. The brokerage cited the company’s improved asset quality, making it eligible for National Housing Bank (NHB) borrowings, and the potential for a credit rating upgrade as key factors contributing to the positive outlook. Additionally, the equity capital raised by PNB Housing through a rights issue is expected to lead to a rating upgrade for the company, enhancing investor confidence.
As of 12:16 pm, PNB Housing Finance shares traded 1.36% higher at ₹70.60.
