PNB Housing Finance Net Interest Income Grows by 70% YoY To ₹629 Cr In Q1FY24

The Board of Directors of PNB Housing Finance Limited on Monday approved the Consolidated Unaudited Financial Results for the quarter ended 30th June 2023, the company announced through an exchange filing.

The company has completed its Rights Issue of ₹2,493.76 Crore in May 2023. The issue was subscribed by around 1.21 times. The issue witnessed participation from all top 4 shareholders viz PNB, Carlyle, Ares SSG, General Atlantic and other large domestic and foreign institutional investors. The proceeds from Rights Issue are being utilized to fund strategic growth plans and capitalize on the available growth opportunities

Retail loan asset grew by 11% YoY to ₹56,978 Crore as on 30th June 2023, which is 94% of Loan Asset and loan asset crossed ₹60,000 crore mark to ₹60,395 crore as on June 30, 2023 registering 5% growth YoY.

Gross NPA declined by 259 bps to 3.76% as on 30th June 2023 as compared to 6.35% and Retail GNPA declined by 124 bps to 2.49% as on 30th June 2023 as compared to 3.73% as on June 30, 2022.

Affordable segment presence expanded to 88 branches & outreaches as on 30th June 2023. Capital Risk Adequacy Ratio stood at 29.93% as on 30th June 2023; Tier I at 28.15%

Care Ratings has upgraded the outlook on various financial facilities / instruments to ‘Positive’ from ‘Stable’ in Jun’23 and reaffirmed the rating at CARE AA.

Profit after Tax increased by 48% YoY and 24% QoQ to ₹347 crore. Highest ever Return on Asset in a decade by the Company at 2.07% in Q1FY24 as compared to 1.61% in FY23.

Financial performance (Q1 FY23-24 vs Q1 FY22-23 and Q4 FY22-23)

Net Interest Income improved by 70% YoY and 6% QoQ to ₹629 crore and Operating expenditure increased by 26% YoY and 5% QoQ to ₹150 crore.

Pre provision Operating Profit improved by 41% YoY and 4% QoQ to ₹507 crore and Yield at 10.59% in Q1 FY24 as compared to 8.63% in Q1 FY23 and 10.41% in Q4 FY23.

Spread on loans at 2.62% in Q1 FY24 as compared to 1.42% in Q1 FY23 and 2.65% in Q4 FY23. Net Interest Margin stood at 3.86% and Gross Margin, net of acquisition cost, stood at 3.91% in Q1FY24.

Credit Cost at 36bps in Q1 FY24 as compared to 31bps in Q1 FY23 and 89bps in Q4 FY23

Business Operations

The disbursements during Q1 FY24 grew by 7% YoY to ₹3,686 crore. Retail disbursement grew by 8% YoY to INR 3,667 crore; 99% of total disbursements

Asset under Management (AUM) grew by 2% YoY to ₹67,340 crore and the Loan Asset grew by 5% YoY and 2% QoQ to ₹60,395 crore as on 30th June 2023

Retail loans grew by 11% YoY and 3% QoQ to ₹56,978 crore and corporate loans are at ₹3,416 crore as on 30th June 2023, reduced by 45% as compared to 30th June 2022.

Asset Quality

Gross Non-Performing Assets is at 3.76% as on 30th June 2023 as compared to 6.35% as on 30th June 2022 and 3.83% as on 31st March 2023. Retail GNPA is 2.49% as on 30th June 2023 as compared to 3.73% as on 30th June 2022 and 2.57% as on 31st March 2023.

Corporate GNPA is 24.99% as on 30th June 2023 as compared to 28.03% as on 30th June 2022 and 22.25% as on 31st March 2023. Increase in corporate GNPA from 31st March 2023 is on account of IndAS adjustment.

Net NPA stood at 2.59% as on 30th June 2023. NNPA in Retail segment is at 1.63% and in Corporate segment at 19.54%.

“The first quarter of this financial year has kick-started on a positive note, as we have achieved growth across all key business and financial parameters. Owing to our ongoing efforts in the retail business, our Loan book crossed INR 60,000 crore mark. We have also witnessed improvement in asset quality, resulting in higher profitability. This quarter the Company's annualised ROA is at 2.07%, highest in a decade," said Girish Kousgi, Managing Director & CEO.