PNB HousingFinance PNB Housing Finance Thursday reported a Profit after Tax (PAT) of Rs 263 crore, registering a growth of 12% YoY and 12% QoQ.
The company said its Net Interest Income (NII) improved by 29% YoY and 75% QoQ to Rs 649 crore while its Net Interest Margin (NIM) stood at 4.14% in Q2 FY23 as compared to 3.01% in Q2 FY22 and 2.36% in Q1 FY23.
During the quarter, there was a net positive impact of Rs 109 crore on assigned loans.
Operating expenditure increased by 15% YoY and 11% QoQ to Rs 136 crore.
Pre-provision Operating Profit improved by 35% YoY and 62% QoQ to Rs 584 crore.
Spread on loans stood at 3.38% in Q2 FY23 as compared to 2.40% in Q2 FY22 and 1.42% in Q1 FY23.
Excluding the net positive impact on assigned loans, the Spread for Q2 FY22-23 is 2.61%.
Gross Margin, net of acquisition cost, stood at 4.47% in Q2 FY23 as compared to 3.26% in Q2 FY22 and 3.00% in Q1 FY23.
Financial performance (Q2 FY22-23 vs Q2 FY21-22 and Q1 FY22-23)
- Profit after Tax increased by 12% YoY and 12% QoQ to INR 263 crore.
- Net Interest Income improved by 29% YoY and 75% QoQ to INR 649 crore. During the quarter, there was a net positive impact of INR 109 crore on assigned loans.
- Operating expenditure increased by 15% YoY and 11% QoQ to INR 136 crore.
- Pre-provision Operating Profit improved by 35% YoY and 62% QoQ to INR 584 crore.
- Spread on loans stood at 3.38% in Q2 FY23 as compared to 2.40% in Q2 FY22 and 1.42% in Q1 FY23. Excluding the net positive impact on assigned loans, the Spread for Q2 FY22-23 is 2.61%.
- Net Interest Margin stood at 4.14% in Q2 FY23 as compared to 3.01% in Q2 FY22 and 2.36% in Q1 FY23.
- Gross Margin, net of acquisition cost, stood at 4.47% in Q2 FY23 as compared to 3.26% in Q2 FY22 and 3.00% in Q1 FY23.
Financial performance (H1 FY22-23 vs H1 FY21-22)
- Profit after Tax is at INR 498 crore vs INR 479 crore registering an increase of 4% YoY.
- Net Interest Income stood at INR 1,019 crore compared to INR 1,053 crore registering a decline of 3%.
- Operating Expenditure is at INR 258 crore vs INR 234 crore registering an increase of 10%.
- Pre provision Operating Profit increased by 4% to INR 943 crore from INR 908 crore.
- ECL provision as on 30th Sept 2022 is INR 2,162 crore resulting in total provision to assets ratio at 3.74%.
- Spread on loans stood at 2.39% compared to 2.53% for H1 FY21-22. Excluding the net positive impact on assigned loan, the Spread for H1 FY22-23 is 2.12%.
- Net Interest Margin stood at 3.25% as compared to 3.10% in H1 FY22.
- Gross Margin, net of acquisition cost, is at 3.74% as compare to 3.31% in H1 FY22.
- Return on Asset (annualized) is at 1.56% as compared to 1.24% in FY22.
- Gearing, as on 30th Sept 2022, reduced to 5.0x compared to 5.89x as on 30th Sept 2021 and 5.1x as on 30th June 2022
- Return on Equity (annualized) at 9.75% as compared to 8.92% for FY22
Business Operations
- The disbursements during H1 FY22-23 grew by 49% YoY to INR 7,045 crore. For Q2 FY22-23 stood at INR 3,594 crore compared to INR 2,961 crore in Q2 FY21-22 registering an increase of 21%.
- Retail disbursement was 98% of total disbursements in H1 FY22-23.
- During H1 FY22-23, the Company disbursed gross amount of INR 225 crore under Co-lending in 20:80 ratio.
- Asset under Management (AUM) is at INR 65,730 crore as on 30th Sept 2022 as compared to INR 70,870 crore as on 30th Sept 2021 (as per IndAS).
- The Loan Asset stood at INR 57,832 crore as on 30th Sept 2022 as compared to INR 60,342 crore as on 30th Sept 2021 and INR 57,287 crore as on 30th June 2022 (as per IndAS).
- Retail loans are at INR 52,124 crore as on 30th Sept 2022, registering an increase of 4% compared to 30th Sept 2021 and 2% compared to 30th June 2022.
- Corporate loans are at INR 5,708 crore as on 30th Sept 2022, reduced by 44% as compared to 30th Sept 2021 and 8% compared to 30th Jun 2022.
- As on 30th Sept 2022, INR 2,147 crore has been restructured under the RBI’s resolution framework for Covid19 related stress.
Distribution and Service Network
- The Company has 105 branches with presence in 74 cities, 46 outreach locations and 22 Hubs.
- The Company has 39 Affordable segment locations in Tier 2 and 3 cities as on 30th Sept 2022.
Asset Quality
- Gross Non-Performing Assets (as per IndAS) reduced by 3.7% QoQ to INR 3,502 crore as on 30th Sept 2022. The GNPA as a percent of Loan Asset (IndAS) is 6.06% as on 30th Sept 2022 as compared to 6.35% as on 30th June 2022.
- Retail GNPA reduced by 7.2% during the quarter to INR 1,769 crore (3.39% of Retail Loan Asset) as on 30th Sept 2022
- Corporate GNPA remained stable QoQ to INR 1,734 crore (30.37% of Corporate Loan Asset) as on 30th Sept 2022.
- Net NPA, as per IndAS, stood at 3.59% of the Loan Assets as on 30th Sept 2022 as compared to 4.26% as on 30th June 2022.
Capital to Risk Asset Ratio (CRAR)
- The Company’s CRAR based on IndAS stood at 24.1%% as on 30th Sept 2022, of which Tier I capital was 21.8% and Tier II was 2.3% as compared to 20.7% as on 30th Sept 2021, of which Tier I capital was 17.8% and Tier II capital was 2.8%.
- CRISIL revised the outlook of credit rating for Non-Convertible Debentures to ‘Stable’ from Negative on 22nd November 2022
Commenting on the performance Girish Kousgi, Managing Director & CEO said: “The demand in the mortgage industry continues to remain robust. As we capitalize on the retail sector, we are also focusing on affordable segment. We have 39 locations operationalized as on 30th Sept 2022, which we intend to expand to over 65 locations by the end of the financial year 2023. The Company is steadfast in its commitment of growing its retail loan asset, improving asset quality while being profitable."
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