PNB Housing Finance's consolidated net profit slipped 9.59% to Rs 257.18 crore on 16.17% decline in total revenue from operations to Rs 1,870.06 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax (PBT) skid 20.42% to Rs 329.48 crore in Q1 June 2020 as against Rs 414.03 crore in Q1 June 2019. Total tax expense for the quarter tumbled 44.20% at Rs 72.30 crore as against Rs 129.56 crore in Q1 June 2019. The result was announced during trading hours today, 22 July 2020.
Net interest income (NII) stood at Rs 487.80 crore in Q1 June 2020 as against Rs 625.5 crore in Q1 June 2019, registering a decline of 22% Y-o-Y (year-on-year). Net interest margin (NIM) for Q1 FY2021 stood at 2.66% as compared to 3.14% for Q1 FY2019, the decline owing to nil securitization during Q1 FY2021 compared to Rs 2,318 crore during Q1 FY2019. Gross margin, net of acquisition cost, for Q1 FY2020-21 stood at 2.61% over 3.44% in Q1 FY2019-20 due to lower fee and other operating income and nil securitization during Q1 FY2020-21.
The total provision coverage ratio was at 98%. Pre-provision operating profit decreased 30% to Rs 404.6 crore from Rs 578.2 crore. Return on asset (ROA) is at 1.33% during Q1 FY2020-21 from 1.37% during Q1 FY2019-20. Return on equity (ROE) stood at 12.6% for Q1 FY21 on comparison to 14.8% in Q1 FY20.
On 27 March 2020, in order to mitigate the burden of debt servicing and provide relief to borrowers, Reserve Bank of India announced moratorium on loans for three months from March 2020 to May 2020 (Phase 1). This was further extended by another three months upto August 2020 (Phase 2). PNB Housing Finance adopted opt-in route for accepting customer requests for moratorium.
As on 30 June 2020, about 39% of company's asset under management (AUM) have opted for moratorium which has reduced substantially from 56% in Phase 1. Retail Loans under moratorium account for 29% of the Retail AUM which has also reduced from 49% in Phase 1.
AUM was at Rs 83,495 crore as on 30 June 2020 as against Rs 88,333 crore as on 30 June 2019, recording a decline of 5% Y-o-Y with share of retail loans being 82% and corporate loans being 18% of the AUM down from 20% as on 30 June 2019.
Loan assets dropped 10% Y-o-Y to Rs 68,009 crore as on 30 June 2020 from Rs 75,933 crore as on 30 June 2019. Gross non-performing assets (GNPA) at an AUM level is at 2.32% and 2.76% at loan assets as on 30 June 2020. Net NPA stood at 1.67% of the loan assets as on 30 June 2020 over 0.67% as on 30 June 2019.
Total borrowings were at Rs 67,283 crore as on 30 June 2020 from Rs 72,261 crore as on 30 June 2019, registering a 7% fall during the period. The deposit portfolio grew 5% to Rs 16,203 crore as on 30 June 2020 from Rs 15,446 crore as on 30 June 2019 with expanding retail penetration. The total assigned loans outstanding as on 30 June 2020 stood at Rs 15,486 crore.
Speaking on the Q1 earnings, Neeraj Vyas, the managing director (MD) & chief executive officer (CEO), has stated that: "During the quarter, the COVID-19 pandemic had a significant impact on the disbursements resulting in the lowest quarterly disbursements in more than 24 quarters. However, with all our branches now operational we are witnessing an increasing trend in disbursement on a month on month basis."
"The company has rolled out its business plan for the FY 20-21 and will continue to focus on the lower risk weighted retail assets, resulting in higher percentage of retail book in the total AUM. As a part of cost rationalisation, the company has merged two branches during the quarter and will merge few more over next few months. During the year, the company will continue its focus on recovery, liquidity, sell down of the corporate book, cost rationalisation and strengthen its balance sheet by further reduction in gearing," he added.
Shares of PNB Housing Finance hit an upper circuit of 5% at Rs 210.25.
The firm is a deposit taking housing finance company. As on 30 June 2020, the company had 103 branches with presence in 64 cities and 23 hubs. The company also services the customers through 27 outreach locations.
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