PNB Housing PAT jumps 57% on strong AUM growth

PNB Housing Finance on Monday reported a 57% jump in its net profit to Rs 439 crore for the January-March quarter because of a growth in its assets under management. The net profit rose 30% on a quarter-on-quarter basis.

Assets under management rose nearly 7% YoY  to Rs 71,243 crore. Loan assets grew 10% to Rs 65,358 crore, boosted by the retail segment.

Retail loans grew 14% to Rs 63,306 crore, constituting 97% of total loan assets. Retail disbursements rose 24% to Rs 5,541 crore in the quarter under review. Disbursements in affordable segment was 10% of retail disbursements in 2023-24 (April-March).

“Our expansion into high-yielding affordable segment and the growth of our retail loan book showcase our commitment towards meeting diverse market needs,” said managing director and CEO Girish Kousgi. “As we move ahead, we look forward with optimism that our fundamentals position us well to achieve the desired growth and profitability.”

In recent years, the company has gradually been reducing its corporate loan portfolio in a bid to manage the asset quality. The corporate loan book fell 46% YoY to Rs 2,052 crore as on March 31.

The net interest income, the difference between interest earned and interest expended, rose nearly 7% to Rs 632.2 crore. The net interest margin fell to 3.65% in the March quarter from 3.74% a year ago. The gross margin, net of acquisition cost, stood at 4.18%.

The cost of borrowing at 7.98% in the March quarter was higher from 7.76% a year ago, leading to a compression in margins.

The gross non-performing asset (GNPA) ratio improved to 1.50% as on March 31, from 3.83% a year ago. Corporate GNPA fell to 3.31% from 22.25% a year ago. Net NPA stood at 0.95%.

The company’s capital to risky assets ratio stood at 29.26% as on March 31.