PNB Housing Finance Q2 results: Net profit dips 15% to Rs 312 crore

KOLKATA: PNB Housing Finance reported 15 per cent dip in net profit on lower business volume and deterioration in asset quality while the company is still in limbo about raising growth capital.

Net profit for the mortgage lender stood at Rs 312 crore in September quarter against Rs 367 crore in the year ago period. Pre provision operating Profit remained stable at Rs 575 crore compared to Rs 578 crore over the same period.

The company's net interest margin stood at 3.5 per cent as compared to 3.2 per cent a year back.

Its loan disbursements nearly halved at Rs 2,444 crore in the second quarter compared with Rs 4,969 crore in the year ago period. Its asset under management (AUM) shrunk to Rs 81,221 crore from Rs 89,471 crore.

The company said its loan disbursements during the quarter witnessed gradual pick up, primarily in the retail segment, and has reached 86 per cent of pre Covid-19 levels. Retail loans contribute 82 per cent of the AUM.

Its gross NPA stood at 2.59 per cent of loan assets while net NPA stood at 1.46 per cent against 0.65 per cent a year back.

The lender is looking to raise Rs 1800 crore through rights issue or preferential issue to augment its capital base. Its promoter Punjab National Bank is awaiting regulator's approval to pump in up to Rs 600 crore in the company, which has been looking to mobilise capital for over three quarters now.