PNB Housing Finance profit declines 3.4%

In a regulatory filing, the non-bank lender said revenues in the first quarter dropped 16.6% on year to 1,412 crore.

PNB Housing Finance profit declines 3.4%
The company seems to have been able to reverse a spike in gross non-performing assets (GNPAs).

PNB Housing Finance on Thursday announced a 3.4% drop in its net profit for the first quarter of FY23 from a year earlier to Rs 235 crore, as core income from interest took a beating “on account of a reduction in the corporate book”.

In a regulatory filing, the non-bank lender said revenues in the first quarter dropped 16.6% on year to 1,412 crore. The interest income declined 19.4% to1,299 crore. Importantly, the net interest income (difference between interest earned and interest paid) plunged 33% in the June quarter from a year earlier to 370 crore. Net interest margin remained under pressure and stood at 2.4% in the Q1FY23, against 3.2% in Q1FY22 and 2.3% in Q4FY22, the company said. Operating profit fell 24.3% on year to359 crore in the first quarter.

The company seems to have been able to reverse a spike in gross non-performing assets (GNPAs). Sequentially, asset quality situation improved, as gross bad loan ratio eased to 6.35% in the June quarter from 8.12% in the previous quarter. However, on a year-on-year basis, the GNPA level remained little changed from 6.40% as of June 30 last year. Net NPA ratio eased to 4.26% from 5.06% in the March quarter.

In a sign that the company is turning more risk-averse, PNB Housing Finance said its corporate book dropped to 9.3% of the total assets under management at 6,006 crore by end of the June quarter from 10.9% worth7,159 crore in the previous quarter.

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