(PTI) PNB Housing Finance on Thursday registered nearly 12 per cent increase in its net profit at ₹262.63 crore in quarter ended September 2022 on a double-digit growth in net interest income as well as disbursements.
The non-banking finance company had logged a net profit of ₹235.21 crore in the year-ago period.
Total income rose to ₹1,683.43 crore in Q2FY23 from ₹1,586.41 crore in the same period of 2021-22, PNB Housing Finance said in a regulatory filing.
The income earned from interest was up by 6.5 per cent in the quarter to ₹1,597.54 crore as against ₹1,499.88 crore in the year-ago period.
While the net interest income, interest earned minus expended, jumped by 29 per cent from a year ago to ₹649 crore. During the quarter, there was a net positive impact of ₹109 crore on assigned loans, PNB Housing said.
There was an uptick of nearly 4 per cent in its total expenses during the quarter at ₹1,343 crore from ₹1,295.21 crore a year ago period.
Among other key financials, the net interest margin improved to 4.14 per cent in Q2 FY23 as compared to 3.01 per cent in Q2 FY22 and 2.36 per cent in Q1FY23.
"The demand in the mortgage industry continues to remain robust. As we capitalise on the retail sector, we are also focusing on the affordable segment. We have 39 locations operationalised as on 30th September 2022, which we intend to expand to over 65 locations by the end of the financial year 2023," Girish Kousgi, Managing Director & CEO, said.
The company is steadfast in its commitment of growing its retail loan asset, improving asset quality while being profitable, he added.
Retail disbursements were 98 per cent of total disbursements in first half of this fiscal.
On the asset front, the Delhi-based housing financier reported 3.7 per cent decline in gross non-performing assets (NPAs or bad loans) from Q1FY23 to ₹3,502 crore at end of Q2FY23.
The gross NPA as a per cent of loan assets stood at 6.06 per cent at the end-September 2022 against 6.35 per cent at end of June 2022.
The net NPAs stood at 3.59 per cent, as against 4.26 per cent at of June 2022. The company said its retail GNPA reduced by 7.2 per cent during the quarter to ₹1,769 crore (3.39 per cent of retail loan assets). The corporate GNPA remained stable from the previous quarter at ₹1,734 crore (30.37 per cent of corporate loan assets).
Promoted by the country's second largest state-owned lender Punjab National Bank (PNB), the company is engaged in the business of providing loans for purchase, construction, repairs and renovations of housing and commercial properties.
Company's asset under management (AUM) stood at ₹65,730 crore by end of Q2FY23. It disbursed ₹3,594 crore during the quarter, up by 21 per cent from a year ago period. Besides, it also disbursed ₹225 crore under co-lending in 20:80 ratio during the half year period ended September.
Among others, PNB Housing said it restructured ₹2,147 crore worth of loans as on September 2022 as per RBI's resolution framework for Covid-19 related stress.
PNB Housing Finance stock closed at ₹451.10, up 4.59 per cent, on the BSE on Thursday.