PNB Housing Finance Q2 net profit down 15% at ₹313 crore
The board of PNB Housing has approved capital raise of up to ₹1,800 crore through preferential/rights issueCompany's total borrowings stood at ₹66,237 crore, down by 7% from a year ago
PNB Housing Finance on Wednesday reported a 15% decline in net profit at ₹313 crore for the quarter ended September.
The housing finance company had posted a net profit of ₹367 crore during the corresponding period of the previous fiscal.
Total revenue during the July-September period of FY21 declined by 9% at ₹2,022 crore, as against ₹2,230 crore in the same period of 2019-20, PNB Housing Finance said in a statement.
Net interest margin stood at 3.5% as compared to 3.2% earlier, while the gross margin (net of acquisition cost) stood at 3.5% as against 3.4% a year earlier.
The company, promoted by state-owned Punjab National Bank (PNB), said the PNB board has decided to infuse capital of up to ₹600 crore in PNB Housing Finance through preferential issue/rights issue, subject to regulatory approvals.
The board of PNB Housing has approved capital raise of up to ₹1,800 crore through preferential/rights issue, it said further.
On asset quality, the company's gross non-performing assets (NPA) were at 2.20% at AUM level and 2.59% at loan assets level as on September 30, 2020. Net NPA stood at 1.46% of the loan assets, it said.
The company said it disbursed ₹2,444 crore in Q2 FY21 as compared to ₹4,969 crore in the year-ago period and ₹694 crore in the preceding quarter ended June 2020.
The disbursements during the quarter witnessed gradual pick up, primarily in the retail segment, and has reached 86% of pre COVID-19 levels, it said.
Asset under management (AUM) stood at ₹81,221 crore at the end of the second quarter, down from ₹89,471 crore in the year-ago period.
Loan assets stood at ₹66,951 crore, against ₹74,353 crore earlier.
Company's total borrowings stood at ₹66,237 crore, down by 7% from a year ago.
"With the opening of the economy we are witnessing an increasing trend in retail disbursement and have reached 88% of the pre COVID-19 numbers.
"The measures undertaken by the company around provisioning and retail business led to a robust balance sheet with total provision to total asset at 2.99%, CRAR (capital to risk weighted assets ratio) at 18.66%...," the firm's Managing Director and CEO Hardayal Prasad said.
The company would continue to focus on disbursing lower risk weighted retail assets, enhance recovery and cost rationalisation to create value for its stakeholders, Prasad added.
PNB Housing Finance stock closed at ₹351.20 apiece on BSE, down 0.21% from its previous close.
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