PNB Housing Finance Q3 results: Net profit rises 43% at Rs 269 crore

In comparison, the housing finance corporation (HFC) had a net profit of Rs 188 crore in the December quarter of fiscal year 22 and Rs 263 crore in the September quarter of fiscal year 23.

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PNB Housing Finance’s net profit increased 43% year on year (YoY) to Rs 269 crore in the third quarter (October-December) of FY23, owing to better margins and net interest income (NII).

In comparison, the housing finance corporation (HFC) earned Rs 188 crore in the same quarter of FY22 and Rs 263 crore in July-September of FY23. On the BSE on Tuesday, the HFC’s shares rose 4.81 percent to Rs 556.60.

The lender stated in an exchange statement that total income for the October-December quarter was Rs 1,797 crore, up from Rs 1,496 crore the previous year.

“As on December 31, 2022, Rs 2,037 crore has been restructured under the RBI’s (Reserve Bank of India’s) resolution framework for Covid-related stress,” it added.

The bank’s asset quality improved, with gross non-performing assets (gross NPAs) as a proportion of gross advances falling to 4.87 percent in Q3 from 6.06 percent the previous quarter. Net NPAs were 3.22 percent, down from 3.59 percent in the previous period.

In the third quarter of fiscal year 23, the mortgage lender disbursed loans of Rs 3,425 crore. It is a 21% increase over the Rs 2,828 crore disbursed in the third quarter of FY22. The majority of the payments were made in the retail sector.

Girish Kousgi, managing director (MD) and chief executive officer (CEO) of PNB Housing Finance, stated that the HFC has grown its footprint in the affordable industry to 82 branches.

“We continue to focus on loan asset growth and asset quality improvement while being profitable,” he added. The HFC’s NII increased by 67% year on year to Rs 734 crore in the reporting quarter.

According to the corporation, net interest margin (NIM) was 4.68 percent in Q3, up from 4.14 percent the prior quarter.

At the end of December 2022, the outstanding loan book increased to Rs 58,034 crore, up from Rs 57,845 crore the previous year. It would also grow sequentially from Rs 57,832 crore in September 2022.

The company’s capital adequacy ratio was 25% as of December 31, 2022, comfortably over regulatory norms.