The disbursement during Q2 FY25 grew by 27.8% YoY and 21.5% QoQ to INR 5,341 crore
The Board of Directors of PNB Housing Finance Limited today approved the Consolidated Unaudited Financial Results for the quarter ended 30th September 2024. The accounts have been subjected to a limited review by the Company’s Statutory Auditors in line with the regulatory guidelines. The financial numbers are based on IndAS
Other Key Highlights
· The Affordable and Emerging Market segment contributes 23% to Retail Loan Asset as on 30th Sept 2024
· During Q2 FY25, Affordable and Emerging Market segment contributed 31% to the retail disbursement
· The disbursement during Q2 FY25 grew by 27.8% YoY and 21.5% QoQ to INR 5,341 crore
o Affordable Segment grew by 68.3% YoY and 7.4% QoQ to INR 630 crore
o Emerging Markets Segment grew by 31.1% YoY and 23.13% QoQ to INR 1,035 crore
· Gross NPA declined by 54 bps to 1.24% as on 30th Sept 2024 as compared to 1.78% as on 30th Sept 2023.
· Recovered INR 48 crore from retail written-off pool in Q2FY25
· Profit after Tax for H1 FY25 is at INR 902.5 crore vs INR 730 crore registering an increase of 23.6% YoY
· Return on Asset is at 2.54% in Q2 FY25 (annualized) and 2.45% in H1 FY25 (annualized)
· Capital Risk Adequacy Ratio stood at 29.13% as on 30th Sept 2024; Tier I at 28.06%
Financial performance (Q2 FY24-25 vs Q2 FY23-24 and Q1 FY24-25)
· Net profit increased by 22.6% YoY and 8.5% QoQ to INR 469.7 crore
· Net Interest Income grew by 1.2% YoY and 2.7% QoQ to INR 668.6 crore; lower growth in NII is due to declining impact of Corporate book. The Net Interest Income for Retail segment grew by 13% YoY.
· Operating expenditure increased by 18.6% YoY and 4.7% QoQ to INR 198.8 crore
· Yield at 10.05% in Q2 FY25 as compared to 10.03% in Q1 FY25 and 10.58% in Q2 FY24
· Cost of Borrowing is at 7.84% in Q2FY25 as compared to 7.92% in Q1 FY25 and 7.99% in Q2 FY24
· Spread on loans is at 2.21% in Q2 FY25 as compared to 2.11% in Q1 FY25 and 2.59% in Q2 FY24
· Net Interest Margin stood at 3.68% in Q2 FY25 as compared to 3.65% in Q1 FY25 and 3.95% in Q2 FY24. Gross Margin, net of acquisition cost, stood at 4.09% in Q2 FY25
· With recovery from retail written off pool, Credit Cost was -24 bps in Q2 FY25 as compared to -7bps in Q1 FY25 and 26bps in Q2 FY24
Financial performance (H1 FY24-25 vs H1 FY23-24)
· Net profit increased by 23.6% YoY to INR 902.5 crore
· Net Interest Income grew by 2.35% YoY to INR 1,319.6 crore; lower growth in NII is due to declining impact of Corporate book. The Net Interest Income for Retail segment grew by 11.3% YoY.
· Operating expenditure increased by 12.5% YoY to INR 388.8 crore
· Yield at 10.04% in H1 FY25 as compared to 10.59% in H1 FY25
· Cost of Borrowing is at 7.88% in H1FY25 as compared to 7.99% in H1 FY25
· Spread on loans is at 2.16% in H1 FY25 as compared to 2.60% in H1 FY25
· Net Interest Margin stood at 3.66% in H1 FY25 as compared to 3.92% in H1 FY25. Gross Margin, net of acquisition cost, stood at 4.06% in H1 FY25
· With recovery from retail written off pool, Credit Cost was -16 bps in H1 FY25 as compared to 31bps in H1 FY25
· ROA improved by 31 bps on YoY basis at 2.45% in H1 FY25 (annualized)
· ROE is at 11.7% (annualized) for H1FY25
Business Operations
· The disbursements during Q2 FY25 grew by 27.8% YoY and 21.5% QoQ to INR 5,341 crore
o Retail Segment grew by 28.2% YoY and 22.4% QoQ to INR 5,341 crore
· Loan Asset grew by 14.2%YoY and 3.8% QoQ to INR 69,501 crore as on 30th Sept 2024
o Retail loans grew by 16.2% YoY and 4.3% QoQ to INR 67,970 crore as on 30th Sept 2024. Within Retail, affordable Loan Asset grew by 297% YoY to INR 2,959 crore, Emerging Markets Loan Asset grew by 22% YoY to INR 12,545 crore and Prime segment grew by 10.7% YoY to INR 52,466 crore as on 30th Sept 2024
o Corporate loans are at INR 1,531 crore as on 30th Sept 2024, reduced by 35.7% as compared to 30th Sept 2023
· Asset under Management (AUM) grew by 10.8% YoY and 3.0% QoQ to INR 74,724 crore as on 30th Sept 2024
Distribution and Service Network
· The Company has 303 branches / outreach locations as on 30th Sept 2024:
o Affordable business presence in 160 branches
o Dedicated 50 branches for Emerging Segment
o 93 branches for Prime segment
Asset Quality
· Gross Non-Performing Assets stood at 1.24% as on 30th Sept 2024 as compared to 1.78% as on 30th Sept 2023 and 1.35% as on 30th Jun 2024
o Retail GNPA is 1.27% as on 30th Sept 2024 as compared to 1.74% as on 30th Sept 2023 and 1.39% as on 30th Jun 2024
o Corporate GNPA stands Nil as on 30th Sept 2024 as compared to 2.86% as on 30th Sept 2023 and Nil as on 30th Jun 2024
· Net NPA stood at 0.84% as on 30th Sep 2024. NNPA in Retail segment is at 0.86%
Capital to Risk Asset Ratio (CRAR)
· The Company’s CRAR stood at 29.13% as on 30th Sept 2024, of which Tier I capital is 28.06% and Tier II is 1.07% as compared 30.38% as on 30th Sept 2023, of which Tier I capital was 28.50% and Tier II was 1.88%.
Commenting on the performance Mr. Girish Kousgi, Managing Director & CEO said:
“The Company’s focussed approach led to growth across all parameters. The Retail Asset grew by 16.2% YoY inching towards our stated guidance of 17% for FY25. Our affordable segment is performing well and crossed INR 3,000 crore in Loan Asset in October 2024. The Company registered retail disbursements growth of 28% YoY to INR 5,341 crore during the reported quarter i.e. Q2 FY25. The portfolio asset quality continues to improve with Gross NPA at 1.24% as on 30th Sept 2024.
With the Government focus on the affordable segment (EWS and Mid income group) under PMAY-Interest Subsidy Scheme, close to 1 crore customers are expected to benefit over next 5 years. This leads to a huge opportunity for players like us with pan India presence and special focus on Affordable and Emerging Markets segment.”
