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

In comparison, the housing finance company (HFC) had booked a net profit of Rs 188 crore in the December quarter of FY22 and Rs 263 crore in the September quarter of FY23

The net profit of PNB Housing Finance rose 43 per cent year-on-year (YoY) to Rs 269 crore during the third quarter (October-December) of FY23 on the back of improved margins and net interest income (NII).

In comparison, the housing finance company (HFC) had clocked a net profit of Rs 188 crore during the same quarter of FY22 and Rs 263 crore in July-September of FY23. On Tuesday, the HFC's stock went up 4.81 per cent to settle at Rs 556.60 on the BSE.

Total income during the October-December quarter was Rs 1,797 crore against Rs 1,496 crore a year ago, the lender said in an exchange filing.

“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 showed an improvement with gross non-performing assets (gross NPAs) as a percentage of gross advances dropping to 4.87 per cent in Q3 from 6.06 per cent in Q2. Net NPAs stood at 3.22 per cent from 3.59 per cent during the comparable period. 

The mortgage lender said it disbursed loans worth Rs 3,425 crore in Q3 of FY23. It is growth of 21 per cent from Rs 2,828 crore disbursed in Q3 of FY22. The disbursements were predominantly in the retail segment.

Girish Kousgi, managing director (MD) and chief executive officer (CEO) of PNB Housing Finance said in the affordable business, the HFC has expanded its presence to 82 branches.

“We continue to focus on loan asset growth and asset quality improvement while being profitable,” he added. NII of the HFC grew by 67 per cent YoY to Rs 734 crore in the reporting quarter.

Net interest margin (NIM) stood at 4.68 per cent in Q3, up from 4.14 per cent in the previous quarter, the company said.

The outstanding loan book rose to Rs 58,034 crore at the end of December 2022 compared to Rs 57,845 crore in the previous year. It also expanded sequentially from Rs 57,832 crore at the end of September 2022.

Capital adequacy ratio of the company was at 25 per cent as on December 31, 2022, comfortably above the regulatory requirements.