PNB Housing Finance net profit increases by 45% in Q2

An increase of 45% in net profit at Rs 367 crore for the quarter to September compared with Rs 253 crore in the comparable period last year, month’s ahead of its proposed Rs 2000 crore equity raising plan.

The company has stated its net interest margin for the quarter was at 3.19% compared with 2.72% for the year ago period.

Its net interest income increased by 36% at Rs 628 crore while asset quality weakened a tad with gross non-performing assets ratio slipping to 0.84% from 0.45% a year ago.

“Lending opportunity is limited now. But despite gloomy times continuing for the sector, our interest rate spread remain healthy,” chief executive Sanjaya Gupta said.

He further states, “The company has created excess provisions out of the profits arising on account of corporate tax rate cut announced recently by the government.”

The tax reduction has contributed 8-9% to net profit. The company has reduced its corporate lending to 83% amid lesser opportunity while retail loan disbursement remained more or less same.

Total loan disbursements for the quarter dropped almost by a third to Rs 12,604 crore between April and September compared with Rs 18,172.2 crore in the same period last year.