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PNB Housing Finance’s Q3 PAT down 19% as NPAs rise

During the quarter ended December, PNB Housing’s assets under management (AUM) de-grew 5% on a sequential basis and 14% on a year-on-year basis to Rs 66,539 crore.

PNB Housing Finance, PNB Housing Finance Q3 results, PNB Housing Finance results
The mortgage financier’s disbursements stood at Rs 2,828 crore during October-December, down 12% on year.

PNB Housing Finance on Thursday reported a 19% year-on-year (YoY) fall in its net profit to Rs 188 crore during the October-December quarter, mainly due to a rise in gross non-performing assets (GNPA) post Reserve Bank of India’s (RBI) November 12 circular on upgradation of bad loans.

During the quarter ended December, PNB Housing’s assets under management (AUM) de-grew 5% on a sequential basis and 14% on a year-on-year basis to Rs 66,539 crore. The degrowth in AUM is primarily on account of loan sell down, accelerated payments and no new sanctions in the corporate book, the company said, adding that retail book contributed 88% of the total AUM.

The mortgage financier’s disbursements stood at Rs 2,828 crore during October-December, down 12% on year. Collection efficiency during the reporting quarter improved to 98.53% from 95.42% a year ago and 98.28% as on September end. Owing to a lower growth in AUM, the company’s net interest income — the difference between interest earned and expended — contracted 25.6% year-on-year to `439 crore. Net interest margin was also lower at 2.67% in October-December.

On asset quality front, PNB Housing Finance’s GNPA ratio deteriorated sharply to 7.64% as on December end from 5.92% a quarter ago and 4.47% a year ago. The net NPA ratio rose to 4.87% at the end of Q3 from 2.69% a year ago. “NPA of Rs 4,340 Crore includes Rs 829 crore, which is less than 90 DPD (days past due) but included due to asset classification norms as per RBI notification dated 12-Nov-2021,” the lender said.

On November 12, the central bank said loan accounts classified as NPAs may be upgraded to ‘standard’ assets only if the entire arrears of interest and principal are paid by the borrower. The rule will apply to both banks and NBFCs.

Further, the lender’s capital adequacy ratio stood at 21.59%, higher than 18.73% as on March end. In a separate notice to exchanges, the company informed its Chief Financial Officer (CFO) Kapish Jain had tendered resignation and current serving notice period till April 7. The management is continuously being strengthened and as part of succession plan, senior leadership roles are being filled through internal talent directly, as per PNB Housing Finance investor presentation. 

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