The company had posted a net loss of Rs 242 crore in same quarter a year ago.
Sequentially, the profit was down from Rs 232.40 crore in Q3 FY21.
Total income during January-March was down at Rs 1,834 crore from Rs 1,952 crore in the same period of 2019-20, PNB Housing Finance said in a regulatory filing.
Interest income dropped over 7 percent at Rs 1,670 crore during the quarter as against Rs 1,803 crore a year earlier.
Expenses reduced by 28 percent to Rs 1,646 crore from Rs 2,279 crore, said the non-banking finance company.
The company's asset quality witnessed deterioration, with the gross non-performing assets (NPAs) spiking to 4.44 percent of the gross loans at end of March 2021 from 2.75 percent in the same period of 2019-20.
Likewise, the net NPAs moved up to 2.43 percent from 1.75 percent.
For the full year 2020-21, the net profit jumped by 44 percent to Rs 930 crore. Income, however, fell by 10 percent to Rs 7,624 crore.
The assets under management (AUM) registered an 11 percent decline to Rs 74,470 crore as of March 31, 2021 from Rs 83,346 crore by end of March 2020.
"Borrowings have decreased from Rs 68,216 crore as on March 31, 2020 to Rs 59,942 crore as on March 31, 2021, registering a decline of 12 percent," it added.
The company approved issuance of secured and unsecured non-convertible debentures of up to Rs 5,810 crore in one or more tranches on private placement basis.
PNB Housing said its board of directors has not recommended any dividend for 2020-21 considering the current economic scenario.
The company is engaged in the business of providing loans for purchase or construction of residential houses.
On the impact of the second wave of COVID-19, PNB Housing Finance said it will continue to closely monitor any material changes to future economic conditions.
The company, promoted by the country's second largest public sector lender PNB, said it operates in the secured mortgage asset business, adding "we believe we hold a much stable asset class which can withstand the pandemic relatively better compared to other asset classes".
With regard to the COVID-related regulatory package, it said provisions of Rs 225 crore have been made at end of March this year, up from Rs 35 crore a year ago.
Besides, Rs 4,861 crore stands as the outstanding advances in overdue categories where moratorium /deferment was extended till August 31, 2020, while Rs 729 crore is the advances outstanding where asset classification benefits were extended.
"For FY21, Rs 729 crore were proforma NPAs as on December 31, 2020. Post March 23, 2021 the movement of days past due is at actuals," it added.
With regard to the Supreme Court order of March 23 on compound interest and the subsequent RBI order this month, the company said it will refund or adjust the "interest on interest" or the compound interest to all borrowers, including those who availed of working capital facilities during the moratorium period.
The refund will be irrespective whether the moratorium had been fully or partially availed or not availed, it added.
The methodology for calculation of the amount of such "interest on interest" has been recently circulated by the Indian Banks Association (IBA).
The company is in the process of suitably implementing this methodology and has created a liability towards estimated interest relief and reduced the same from the interest income for the year ended March 31, 2021.PNB Housing Finance stock closed 2.52 percent up at Rs 376.90 apiece on BSE.