PNB Housing Finance net falls 22%, asset quality deteriorates
Mortgage lender PNB Housing Finance on Thursday posted a 22% decline in its net profit to Rs 237 crore for the December quarter, compared with Rs 303 crore a year ago, due to an increase in finance cost, contraction in margins and a dismal growth in interest income. Sequentially, the net profit was down 54%. The dent in the bottom line was despite a benefit of Rs 30 crore in the form of deferred tax in the quarter under review.
The Q3 net interest income (NII) saw a muted growth of Rs 566 crore, compared with Rs 558 crore last year. The net interest margin (NIM) declined to 2.98%, compared to 3.06% a year ago and 3.19% in the previous quarter.
The asset quality deteriorated in the December quarter. Gross non-performing assets (GNPA) stood at 1.75% of loan assets as on December 31, against 0.47% a year ago. Of this, retail GNPA stood at 1.06% and corporate GNPAs at 4.17%. The net NPA stood at 1.25%, compared with 0.37% in the year-ago period.
The finance cost increased to Rs 1,461 crore in the latest quarter, compared with Rs 1,410 crore a year ago. The spread on loans for Q3 stood at 2.53% against 2.56% a year ago. Revenue from operations remained almost unchanged at Rs 2,074 crore, compared with Rs 2,078 crore a year back.
The home financier said in a release that parent Punjab National Bank will maintain a minimum shareholding of 26% in PNB Housing. “PNB has confirmed that its stated objective is to continue to hold a minimum 26% shareholding in the company and continue to be the promoter of the company,” the lender said in the release. PNB does not plan to sell any of its current holding, the release specified.