PNB Housing's Profit After Tax Surges By 57% Driven By Robust AUM Expansion
Retail loans increased by 14% to reach Rs 63,306 crore, representing 97% of the total loan assets
PNB Housing Finance announced a notable 57 per cent surge in its net profit to Rs 439 crore for the January-March quarter, attributed to the expansion of its assets under management. Quarter-on-quarter, the net profit witnessed a robust 30 per cent increase.
The assets under management witnessed a nearly 7 per cent year-on-year growth, reaching Rs 71,243 crore. Loan assets experienced a notable 10 per cent growth, totaling Rs 65,358 crore, primarily driven by the retail segment.
Retail loans demonstrated a substantial 14 per cent growth, amounting to Rs 63,306 crore, comprising 97 per cent of the total loan assets. The retail disbursements surged by 24 per cent to Rs 5,541 crore during the reviewed quarter, with the affordable segment accounting for 10 per cent of retail disbursements in the fiscal year 2023-24.
PNB Housing Finance's managing director and CEO, Girish Kousgi, expressed satisfaction with the company's expansion into the high-yielding affordable segment and the growth of the retail loan book, emphasising their commitment to addressing diverse market needs. Kousgi also expressed optimism about achieving desired growth and profitability going forward.
In a strategic move to manage asset quality, the company has been gradually reducing its corporate loan portfolio, resulting in a 46 per cent year-on-year decline to Rs 2,052 crore as of 31 March.
The net interest income, reflecting the difference between interest earned and interest expended, registered a nearly 7 per cent increase to Rs 632.2 crore. However, the net interest margin witnessed a slight decline to 3.65 per cent in the March quarter from 3.74 per cent a year ago. The gross margin, after deducting acquisition costs, was reported at 4.18 per cent.
The cost of borrowing rose to 7.98 per cent in the March quarter from 7.76 per cent a year ago, leading to margin compression.
Notably, the gross non-performing asset (GNPA) ratio improved to 1.50 per cent as of 31 March, down from 3.83 per cent a year ago, with corporate GNPA declining to 3.31 per cent from 22.25 per cent a year ago. The net NPA stood at 0.95 per cent.
As of 31 March, the company's capital to risky assets ratio stood at 29.26 per cent.
