PNB Housing Finance net rises 45% on higher NII

PNB Housing Finance on Thursday reported a 45% year-on-year (y-o-y) increase in its net profit to `366.8 crore for the quarter ended September, led by a 36% y-o-y rise in net interest income. Net interest income (NII) stood at `628.4 crore at the end of Q2FY20. Net interest margin (NIM), a key measure of profitability, stood at 3.19%, a 47 basis point increase from a year ago.

Disbursements fell to Rs 12,603.5 crore in H1FY20, compared to Rs 18,172.2 crore a year ago. While retail disbursement fell 10% y-o-y to Rs 11,748 crore, corporate fell 83% y-o-y to Rs 856 crore in H1.

While the total income came in at Rs 2,230.34 crore, a 23.3% y-o-y increase, the tax expenses came down to Rs 59.16 crore from Rs 129.56 crore in the previous quarter. MD Sanjaya Gupta said, “With testing times continuing for the sector, the company maintained its focused approach towards contained business growth, portfolio quality and financial performance. As a prudent practice, the company created excess provisions out of the profits arising on account of corporate tax rate cut announced recently.”

The cumulative ECL provision as on September 30 stood at Rs 725 crore. Further, the company has made steady state provisions for unforeseeable macro-economic factors of Rs 169 crore.

Punjab National Bank