The net interest margin declined to 2.98% in the quarter ended December 2019, compared with 3.19% in the preceding quarter and 3.06% in the corresponding quarter last year. Net interest income for the quarter ended December 2019 rose 1% to Rs 566.00 crore as against Rs 558 crore in the same period of the previous year.

Income from operations increased 7% to Rs 1890.35 crore in the quarter ended December 2019. Interest expense moved up 4% to Rs 1461.03 crore, while other expenses (including staff cost of Rs 58.87 crore and other expenses of Rs 57.72 crore) dipped 22% to Rs 116.59 crore. Ensuing Gross profit fell 4% to Rs 497.17 crore.

The depreciation increased to Rs 18.13 crore in Q3FY2020 against Rs 7.59 crore in Q3FY2019. The provision and write offs jumped to Rs 180.79 crore against Rs 70.14 crore in same quarter last year. PBT dipped 32% to Rs 298.25 crore.

Effective tax rate eased to 20.53% bps on yoy basis from 31.39%. The profit after tax of the company declined 22% to Rs 237.02 crore in the quarter ended December 2019.

Loan book and disbursements

The AUM of the company increased 8% to Rs 86297 crore end December 2019 over December 2018. The loan portfolio of the company declined 2% to Rs 69194 crore, while the loans sold outstanding increased 90% to Rs 17103 crore end December 2019 over December 2018. The disbursements dipped 66% to Rs 3196 crore in the quarter ended December 2019.

The deposits with the company have increased 26% to Rs 16470 crore at end December 2019.

Asset quality

Gross NPA ratio increased to 1.75% at end December 2019 from 0.84% a quarter ago and 0.47% a year ago. Meanwhile, Net NPA ratio also increased to 1.44% at end December 2019 from 0.65% a quarter ago.

In absolute terms, GNPA stood at Rs 1210.90 crore and NNPA at Rs 996.39 crore at end December 2019.

Book value of the company stood at Rs 491.8 per share, while adjusted book value was at Rs 432.6 per share at end December 2019.

Financial Performance 9MFY2020:

For the nine months ended December 2019 (9MFY2020), PNB Housing Finance reported 20% rise in Income from operations at Rs 5885.64 crore. Interest expense moved up 20% to Rs 4494.98 crore, while other expenses declined 12% to Rs 356.64 crore. Ensuing Gross profit increased 21% to Rs 1686.09 crore. Depreciation increased 131% to Rs 51.31 crore, while provision and write offs galloped 178% to Rs 496.53 crore. PBT declined 4% to Rs 1138.25 crore. Effective tax rate stood at 21.96% 9MFY2020, compared with 31.75% in 9MFY2019. The PAT of the company improved 9% to Rs 888.3 crore in 9MFY2020.