PNB Housing Finance on Thursday reported a marginal decline of 3.4 per cent in its net profit at Rs 235 crore in the April-June quarter as core income from interest fell. The housing finance company promoted by state-owned Punjab National Bank (PNB) had witnessed a net profit of Rs 243 crore in the same period a year ago.
Revenues in the first quarter of FY23 were down at Rs 1,412 crore as against Rs 1,693 crore in the year-ago period, PNB Housing Finance said in a regulatory filing. The interest income of the company stood at Rs 1,299 crore for the quarter when compared with Rs 1,611 crore in the year-ago quarter. The net interest income --difference of interest earned minus interest paid -- was down by 33 per cent to Rs 370 crore as against Rs 550 crore.
Operating profit declined by 24.3 per cent to Rs 359 crore in the first quarter of FY23 from Rs 475 crore in the corresponding period of the pervious fiscal. Gross Non-Performing Assets (GNPAs) marginally improved to 6.35 per cent of the gross advances as of June 30, 2022 compared to 6.40 per cent in the year ago quarter. It improved significantly from the level of 8.12 per cent recorded at the end of March 2022.
Value-wise, the gross NPAs or bad loans fell to Rs 3,639 crore from Rs 3,931 crore. GNPA decreased primarily driven by corporate book, the company said, adding one corporate account worth Rs 353 crore was closed and the loan was transferred to another developer. Besides, it sold a corporate account worth Rs 187 crore to an asset reconstruction company.
The company said it also wrote off two corporate accounts worth Rs 425 crore and the recovery efforts are continuing, while one corporate account worth Rs 4 crore has been closed. Net NPAs, however, moved up at 4.26 per cent from 4.05 per cent.
PNB Housing said it has set aside Rs 2,016 crore as Expected Credit Loss (ECL) provision. Its Covid-hit restructured loans stood at Rs 2,330 crore as on June 30, 2022.
Further, the company said there has been significant reduction in its corporate book which fell to 9.3 per cent of the total Asset Under Management (AUM) at Rs 6,006 crore by end of Q1 FY23 from 10.9 per cent equivalent to Rs 7,159 crore by end of March 2022. The company's retail loan asset registered a growth of 1.7 per cent from a year ago in Q1 FY23 and disbursement registered 96 per cent rise on the back of retail segment to Rs 3,451 crore.Stock of PNB Housing closed at Rs 351.10 apiece on BSE, up 1.33 per cent from its previous close.