However, the company has exhibited sharp decline in disbursements, while loan growth has moderated sharply in Q2FY2020. Further, the credit cost also remained higher in Q2FY2020.

The loan book of the company moderated to 11%, while overall AUM also decelerated to 22% end September 2019 over September 2018. The company has posted sharp 41% dip in the disbursement in Q2FY2020.

The net interest margin was healthy at 3.19% in the quarter ended September 2019, compared with 3.14% in the preceding quarter and 2.72% in the corresponding quarter last year. Net interest income for the quarter ended September 2019 increased 36% to Rs 628 crore as against Rs 463 crore in the same period of the previous year.

Income from operations increased 25% to Rs 2015.88 crore in the quarter ended September 2019. Interest expense moved up 24% to Rs 1521.27 crore, while other expenses (including staff cost of Rs 70.98 crore and other expenses of Rs 43.75 crore) dipped 15% to Rs 114.73 crore. Ensuing Gross profit advanced 34% to Rs 594.34 crore.

The depreciation jumped marginally to Rs 16.79 crore in Q2FY2020 against Rs 7.91 crore in Q2FY2019. The provision and write offs were higher at Rs 151.58 crore against Rs 64.69 crore in same quarter last year. PBT increased 14% to Rs 425.97 crore.

Effective tax rate eased to 13.89% bps on yoy basis from 32.08% . The profit after tax of the company improved 45% to Rs 366.81 crore in the quarter ended September 2019.

Loan book and disbursements

The AUM of the company increased 22% to Rs 89471 crore end September 2019 over September 2018. The loan portfolio of the company increased 11% to Rs 74353 crore, while the loans sold outstanding zoomed 126% to Rs 15118 crore end September 2019 over September 2018. The disbursements declined 41% to Rs 4970 crore in the quarter ended September 2019.

The deposits with the company have increased 38% to Rs 17179 crore at end September 2019.

Asset quality

Gross NPA ratio was nearly flat on sequential basis at 0.84% at end September 2019 from 0.85% a quarter ago, while increased from 0.45% a year ago. Meanwhile, Net NPA ratio has declined on sequential basis to 0.65% at end September 2019 from 0.67% a quarter ago.

In absolute terms, GNPA stood at Rs 624.57 crore and NNPA at Rs 483.29 crore at end September 2019.

Book value of the company stood at Rs 477.9 per share, while adjusted book value was at Rs 449.1 per share at end September 2019.

Financial Performance: H1FY2020

For the half year ended September 2019 (H1FY2020), PNB Housing Finance reported 27% rise in income from operations at Rs 3995.29 crore. Interest expense moved up 30% to Rs 3033.95 crore, while other expenses declined 7% to Rs 240.05 crore. Ensuing Gross profit increased 36% to Rs 1188.92 crore. Depreciation increased 127% to Rs 33.18 crore, while provision and write offs jumped 190% to Rs 315.74 crore. PBT improved 12% to Rs 840.00 crore. Effective tax rate stood at 22.47% H1FY2020, compared with 31.96% in H1FY2019. The PAT of the company improved 28% to Rs 651.28 crore in H1FY2020.