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.

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