Mumbai: PNB Housing Finance on Thursday reported a 21.77% year-on-year fall in net profit to ₹237.02 crore in the quarter ended December on lower disbursement and higher total expenses. The company had posted a net profit of ₹302.97 crore in the corresponding period of last year.
The profit was lower than ₹779.2 crore estimated by a Bloomberg poll of 14 analysts.
Total income fell 0.18% to ₹2,074.79 crore during the December quarter from ₹2,078.46 crore a year ago. Net interest income stood at ₹566.1 crore for the December quarter against ₹558.2 crore for the same quarter last year, registering a growth of 1.4%.
The spread on loans for December 2019 quarter stood at 2.53% compared with 2.56% in the corresponding quarter last year. Net interest margin for the third quarter of the fiscal stood at 2.98% compared with 3.06% for the same quarter of last fiscal.
Gross margin, net of acquisition cost, for December quarter stood at 3.04% compared with 3.39% for the same quarter last year.
Gross NPA as on December 31, 2019 was 1.75% as against 0.47% a year ago. Assets under management (AUM) increased to ₹86,297 crores as on December 31, 2019, registering a growth of 8%.
“Considering the external market scenario, the company focussed towards conserving Tier 1 Capital, Liquidity, ALM (Asset and liability management), resolution of corporate loan book accounts and capital raise. As a result, the Capital adequacy ratio expanded to 17.06% and gearing improved to 8.47% as on 31st December 2019," said Sanjaya Gupta, managing director.
Total borrowings were at ₹70,559 crore as on 31 December 2019, up 2% from last year. Share of commercial papers in the total borrowing reduced to ₹2,591 crore as on 31 December from ₹8,625 crore a year ago.
Disbursements stood at ₹15,800 crore during the quarter compared with ₹27,518 crore a year ago. Retail disbursements saw a de-growth of 26% YoY to ₹14,506 crore. Corporate finance disbursements fell 84% YoY to ₹1,293 crore during the December quarter.
"Company also maintained healthy liquidity of ₹9,258 crore as of 31st December 2019. While maintaining muted disbursements for rest of the current fiscal, we would continue to focus on raising Tier-1 capital, maintain adequate liquidity, resolution of corporate accounts and further reduce gearing levels," Gupta added.
Deposit portfolio grew 26% to ₹16,470.4 crore in the quarter from ₹13,085.7 crore a year ago with expanding retail penetration. Total assigned loans outstanding as on 31 December was at ₹17,103 crore.
Shares of PNB Housing Finance closed 4.82% lower at ₹543.40 on the BSE on Thursday, while the benchmark Sensex rose 0.64% to close at 41378.09 points.