It expanded affordable segment presence to 100 branches & outreaches as on 31st Dec 2023
FinTech BizNews Service
Mumbai, January 25, 2024: The Board of Directors of PNB Housing Finance Limited today approved the Consolidated Unaudited Financial Results for the quarter and nine months ended 31st December 2023. 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.
Key Highlights
• India Ratings have upgraded the rating to “IND AA+” from “IND AA”; Outlook ‘Stable’ in January 2024.
• Affordable segment surpassed a disbursement and loan book of INR 1,000 crore in less than one year, contributing 8% to the retail disbursement in 9MFY24
• Expanded Affordable segment presence to 100 branches & outreaches as on 31st Dec 2023.
• Retail Loan Asset grew by 13% YoY to INR 60,129 crore as on 31st Dec 2023, which is 96.5% of Loan Asset.
• Total Loan Asset stood at INR 62,337 crore as on 31 st Dec 2023 registering 7% growth YoY.
• Gross NPA declined by 5 bps to 1.73% as on 31st Dec 2023 as compared to 1.78% as on 30th Sept 2023. • The Company’s CRAR based on IndAS stood at 29.53% as on 31 st Dec 2023, of which Tier I capital is 27.97%. • Certified as a “Great Place to Work” by building a ‘High Trust, High Performance Culture”.
Financial performance (Q3 FY23-24 vs Q3 FY22-23 and Q2 FY23-24)
• Net profit for the quarter has grown 26% YoY to INR 338 crore • Net Interest Income excluding one-off remained flat at INR 622 crore on QoQ basis due to gradual shift in mix towards retail. However, reported NII declined by 19% YoY and 10% QoQ to INR 595 crore. • Operating expenditure remained flat QoQ and increased by 35% YoY to INR 166 crore. We continue to invest in Roshni branch expansion and upgradation of IT infrastructure. • Yield at 10.19% in Q3 FY24 as compared to 10.58% in Q2 FY24 and 11.38% in Q3 FY23. Excluding one-off, Yield stood at 10.29% in Q3 FY24. • Cost of Borrowing at 8.07% in Q3 FY24 as compared to 7.99% in Q2 FY24 and 7.55% in Q3 FY23. Excluding “one-off” cost of INR 11.79 crore in Q3 FY24 on account of ECB hedging cost, cost of borrowing stands at 7.98%. • Spread on loans is at 2.12% in Q3 FY24 as compared to 2.59% in Q2 FY24 and 3.83% in Q3 FY23. After adjusting the one-offs, Spread stood at 2.31% in Q3 FY24. • Net Interest Margin stood at 3.49% and excluding one-off is at 3.65%. Gross Margin, net of acquisition cost, stood at 3.79% in Q3 FY24. • Credit Cost at 34 bps in Q3 FY24 as compared to 158 bps in Q3 FY23 and 26 bps in Q2 FY24.
Financial performance (9M FY23-24 vs 9M FY22-23)
• Profit after Tax is at INR 1,069 crore vs INR 767 crore registering an increase of 39% YoY. • Net Interest Income stood at INR 1,884 crore compared to INR 1,753 crore registering a growth of 7%. • Operating Expenditure is at INR 483 crore vs INR 377 crore registering an increase of 28%. • Pre provision Operating Profit stood at INR 1,559 crore as against INR 1,565 crore. • ECL provision as on 31st Dec 2023 is INR 1,212 crore resulting in total provision to assets ratio at 1.94%. The Stage 3 Provision coverage ratio is at 34.4%. • Spread on loans stood at 2.42% compared to 2.87% for 9M FY22-23. • Net Interest Margin stood at 3.77% as compared to 3.72% in 9M FY22-23. • Gross Margin, net of acquisition cost, is at 3.97% as compared to 4.14% in 9M FY22-23. • Return on Asset (annualized) is at 2.08% as compared to 1.60% in 9M FY22-23. • Return on Equity (annualized) at 10.52% as compared to 9.88% for 9M FY22-23. Business Operations • The disbursements during 9M FY23-24 grew by 15% YoY to INR 12,009 crore. For Q3 FY23-24 stood at INR 4,143 crore registering an increase of 21% YoY and degrew by 1% QoQ. o Retail disbursement grew by 16% YoY to INR 11,942 during 9M FY23-24. In Q3 FY23-24, retail disbursements grew by 22% YoY and degrew by 1% QoQ to INR 4,110 crore • Asset under Management (AUM) grew by 4% YoY to INR 68,549 crore as on 31st Dec 2023 • Loan Asset grew by 7% YoY and 2% QoQ to INR 62,337 crore as on 31st Dec 2023 o Retail loans grew by 13% YoY and 3% QoQ to INR 60,129 crore as on 31st Dec 2023.
Corporate loans are at INR 2,208 crore as on 31st Dec 2023, reduced by 55% as compared to 31st Dec 2022. Distribution and Service Network • The Company has 212 branches / outreach locations. o Affordable business presence expanded to 100 branches/outreaches as on 31st Dec 2023 Asset Quality • Gross Non-Performing Assets is at 1.73% as on 31st Dec 2023 as compared to 4.87% as on 31st Dec 2022 and 1.78% as on 30th Sept 2023. o Retail GNPA is 1.67% as on 31st Dec 2023 as compared to 2.86% as on 31st Dec 2022 and 1.74% as on 30th Sept 2023. o Corporate GNPA is 3.35% as on 31st Dec 2023 as compared to 26.61% as on 31st Dec 2022 and 2.86% as on 30th Sept 2023. • Net NPA stood at 1.14% as on 31st Dec 2023. NNPA in Retail segment is at 1.14% and in Corporate segment at 1.30%.
Capital to Risk Asset Ratio (CRAR) • The Company’s CRAR based on IndAS stood at 29.53% as on 31st Dec 2023, of which Tier I capital is 27.97% and Tier II is 1.56% as compared 24.60% as on 31st Dec 2022, of which Tier I capital was 22.43% and Tier II was 2.17%.
Commenting on the performance Girish Kousgi, Managing Director & CEO said: “During the recent period, India Ratings upgraded the rating to ‘AA+’ from ‘AA’ with ‘Stable” outlook. the Company has also been awarded as ‘Great Place to Work’ by GPTW during the quarter. Our sustained focus on affordable segment helped us to achieve INR 1,000 crore in disbursements and loan book within a year of operations. We continue to focus on the affordable segment and in process of identifying geographies/segments within the prime segment that offer better yields and growth. As we expand into newer geographies/segment, we plan to increase our network of branches/outreaches from 212 currently to 300 over the next few months. We are confident that our various efforts shall drive growth and profitability.
