PNB Housing Q3 net profit falls 19%, asset quality deteriorates

PNB Housing's gross non performing assets rose to 7.64% in Oct-Dec, 2021 as compared to 5.94% a quarter ago

PNB Housing Finance’s net profit in October-December dropped 19 per cent to Rs 188 crore on the back of a 20 per cent decline in interest income and deteriorating asset quality.

The mortgage lender’s interest income dropped to Rs 1,411 crore from Rs 1,758 crore reported in the same quarter last year. Its net interest income fell 26 per cent year-on-year (YoY) to Rs 439 crore. Net interest margin dropped 2.67 per cent during the quarter from 3.01 per cent in the previous quarter and 3.18 per cent in the year-ago period.

PNB Housing’s gross non-performing assets rose to 7.64 per cent in October-December as compared to 5.94 per cent in the last quarter. The lender’s gross NPAs in year-ago period was 4.47 per cent. Net NPAs increased to 4.87 per cent during the quarter from 3.32 per cent quarter ago and 2.69 per cent year ago. 

The mortgage lender’s capital position has improved in the first nine months of the financial year as compared to FY21, it told the exchanges. The capital to risk weighted asset ratio (CRAR) improved from 18.73 per cent in FY21 to 21.59 per cent in April-December 2021. The housing finance company also said that its capital raising plan is in progress.

In November, its board had approved issuance of secured and unsecured non-convertible debentures of up to Rs 2,000 crore in one or more tranches, on private placement basis.

As the country battles yet another wave of the Covid-19 pandemic, the lender said the extent of the pandemic’s impact on the company would depend on the economic situation, which is “highly unpredictable.

The lender said its chief financial officer (CFO) Kapish Jain has tendered his resignation. Jain will serve his notice period until April 7, 2022.