PNB Housing Finance Q1 result: PAT rises 25% to Rs 433 cr on steady demand

PNB Housing Finance reported a near 25 per cent rise in first-quarter profit on Thursday, helped by a steady demand for home loans.

The company's consolidated net profit rose to Rs 433 crore ($51.7 million) for the quarter ended June 30, up from Rs 347 crore a year earlier.

Demand for premium housing in the country has been strong even as the affordable segment saw some pressure due to high interest rates.

Home financiers saw strong disbursement in the quarter as home-buyers pinned hopes of a rate cut later in the year.

PNB Housing, a unit of state-run lender Punjab National Bank, said its total disbursements rose 19 per cent to Rs 4,398 crore.

 

Net interest income, the difference between interest earned and paid, rose 4 per cent to Rs 651 crore.

 

PNB Housing Finance has cut back on corporate loans over the last few quarters due to increased bad debt in the segment, aiding its bottomline

The home financier's gross bad loans as a percentage of total loans improved to 1.35 per cent at the end of June, from 3.76 per cent a year earlier and 1.50 per cent a quarter ago.

Shares of PNB Housing Finance, which rose as much as 2.6 per cent after the results were last up 0.6 per cent.