The loan book of the company declined 9%, while overall AUM also fell 2% end March 2020 over March 2019. The company has posted sharp 67% dip in the disbursement in Q4FY2020. The margins of the company have declined, while asset quality weakened in Q4FY2020.

The net interest margin was at 2.61% in the quarter ended March 2020, compared with 2.98% in the preceding quarter and 3.18% in the corresponding quarter last year.

Net interest income for the quarter ended March 2020 declined 20% to Rs 488 crore as against Rs 610 crore in the same period of the previous year.

Income from operations declined 5% to Rs 1802.57 crore in the quarter ended March 2020. Interest expense fell 3% to Rs 1379.97 crore, while other expenses (including staff cost of Rs 35.24 crore and other expenses of Rs 94.49 crore) dipped 17% to Rs 129.73 crore. Ensuing Gross profit declined 22% to Rs 442.14 crore.

The depreciation rose to Rs 14.54 crore in Q4FY2020 against Rs 9.15 crore in Q4FY2019. The provision and write offs stood at Rs 754.84 crore against Rs 10.11 crore in same quarter last year. The pre-tax losses came in at Rs 327.24 crore. The company has written back tax provisions of Rs 85.18 core, helping to reduce net loss to Rs 242.06 crore in the quarter ended March 2020.

Loan book and disbursements

The AUM of the company declined 2% to Rs 83346 crore end March 2020 over March 2019. The loan portfolio of the company fell 9% to Rs 67571 crore. The loans sold outstanding increased 47% to Rs 15775 crore end March 2020 over March 2019. The disbursements declined 67% to Rs 2826 crore in the quarter ended March 2020.

The deposits with the company have increased 15% to Rs 16470 crore at end March 2020.

Asset quality

Gross NPA ratio increased to 2.75% at end March 2020 from 1.75% a quarter ago and 0.48% a year ago. Meanwhile, Net NPA ratio also increased to 1.75% at end March 2020 from 1.44% a quarter ago.

In absolute terms, GNPA stood at Rs 1856.23 crore and NNPA at Rs 1183.79 crore at end March 2020.

Book value of the company stood at Rs 475.5 per share, while adjusted book value was at Rs 405.1 per share at end March 2020.

Financial Performance FY2020:

For the year ended March 2020 (FY2020), PNB Housing Finance reported 13% rise in Income from operations at Rs 7688.21 crore. Interest expense moved up 14% to Rs 5874.95 crore, while other expenses declined 13% to Rs 486.37 crore. Ensuing Gross profit increased 9% to Rs 2128.23 crore. Depreciation increased 110% to Rs 65.85 crore, while provision and write offs increased 562% to Rs 1251.37 crore. PBT declined 53% to Rs 811.01 crore. Effective tax rate stood at 20.32% FY2020, compared with 31.30% in FY2019. The PAT of the company fell 46% to Rs 646.24 crore in FY2020.