PNB Housing Finance’s net profit 3% lower at Rs 235 crore

Its net interest income dipped by 33% year-on-year at Rs 370 crore while total income fell 17% at Rs 1412 crore as compared to Rs 1693 crore in the year-ago quarter.

The mortgage lender’s net interest margin for the quarter was lower at 2.4% as compared with 3.2% for the year-ago period.

The lender saw its operating profit falling 24% at Rs 360 crore.

Its loan assets portfolio shrank to Rs 56,301 crore at the end of June from Rs 60,438 crore a year back and from Rs 56,889 crore at the end of last fiscal, on account of sell down and accelerated payments in relation to corporate book. Its retail loan assets also saw a mere 1.7% year-on-year rise to Rs 50,295 crore.

Asset under management stood at Rs 64,850 crore with retail business share rising to 91% from 85% a year back while corporate AUM declined by 45% to Rs 6,006 crore from Rs 10,989 crore a year ago.

“Demand in the real estate sector remains robust with 9-11% growth expected by in FY23. To leverage this opportunity, we continue to concentrate on the retail sector to accelerate growth,” managing director Hardayal Prasad was quoted saying in a statement issued by the company.

“We continue to remain persistent towards improving asset quality, which has led to a reduction in gross NPA by 23% quarter-on-quarter to Rs 3,639 crore,” Prasad said.

The company’s gross non-performing assets ratio remained almost flat at 6.35% at the end of the reporting quarter against 6.4% a year back. Net NPA was 4.26% against 4.05% over the same period. Its provision coverage ratio was at 33% at the end of June.