The net interest improved 3.52% in the quarter ended September 2020, compared with 2.66% in the preceding last quarter and 3.19% in the corresponding quarter last year. Net interest income for the quarter ended September 2020 increased 4% to Rs 651.00 crore as against Rs 628 crore in the same period of the previous year.

Income from operations fell 3% to Rs 1960.31 crore in the quarter ended September 2020. Interest expense dipped 12% to Rs 1339.67 crore, while other expenses (including staff cost of Rs 55.02 crore and other expenses of Rs 37.06 crore) slipped 20% to Rs 92.08 crore. Ensuing Gross profit fell 1% to Rs 589.75 crore.

The depreciation declined to Rs 14.63 crore in Q2FY2021 against Rs 16.79 crore in Q2FY2020. The provision and write offs stood at Rs 179.55 crore against Rs 151.58 crore in same quarter last year. PBT declined 7% to Rs 395.57 crore.

Effective tax rate rose to 20.80% bps on yoy basis from 13.89%. The profit after tax of the company improved 15% to Rs 313.29 crore in the quarter ended September 2020.

Loan book and disbursements

The AUM of the company fell 9% to Rs 81221 crore end September 2020 over September 2019. The loan portfolio of the company declined 10% to Rs 66951 crore, while the loans sold outstanding eased 6% to Rs 14270 crore end September 2020 over September 2019. The disbursements dipped 51% to Rs 2444 crore in the quarter ended September 2020.

Asset quality

Gross NPA ratio eased to 2.59% at end September 2020 from 2.76% a quarter ago and increased from 0.84% a year ago. Meanwhile, Net NPA ratio declined to 1.46% at end September 2020 from 1.67% a quarter ago.

In absolute terms, GNPA stood at Rs 1737 crore and NNPA at Rs 974 crore at end September 2020.

Proforma GNPA not considering status quo as per the Honorable Supreme Court order would have been 3.04%.

Capital Raise Update

PNB Board has decided to infuse capital upto Rs 600 crore in PNB Housing Finance, through Preferential Issue/Rights Issue subject to regulatory approvals.

Board approved capital raise of upto Rs 1,800 crore through Preferential Issue/Rights Issue.

Distribution and Service Network

The Company has 96 branches with presence in 64 unique cities and 22 Hubs. The Company also services the customers through 17 outreach locations.

Borrowings

Total borrowings are at Rs 66237 crore end September 2020 from Rs 71457 crore end September 2019 registering a decline of 7%.

The deposit portfolio stood at Rs 16600 crore end September 2020 from Rs 17179 crore end September 2019 with expanding retail penetration.

Capital to Risk Asset Ratio (CRAR)

The Company's CRAR based on IGAAP stood at 18.66% end September 2020, of which Tier I capital was 16.13% and Tier II capital was 2.53% compared to 15.67% with Tier I at 12.69% and Tier II at 2.98% as on 30th September 2019. The risk-weighted assets as on 30th September 2020 stood at Rs 50297 crore.

Book value of the company stood at Rs 505.9 per share, while adjusted book value was at Rs 448.0 per share at end September 2020.

Financial Performance H1FY2021:

For the six months ended September 2020 (H1FY2021), PNB Housing Finance reported 6% decline in Income from operations at Rs 3761.83 crore. Interest expense dipped 11% to Rs 2703.20 crore, while other expenses plunged 25% to Rs 180.32 crore. Ensuing Gross profit eased 15% to Rs 1010.31 crore. Depreciation declined 8% to Rs 30.62 crore, while provision and write offs fell 19% to Rs 254.64 crore. PBT slipped 14% to Rs 725.05 crore. Effective tax rate stood at 21.32% H1FY2021, compared with 22.47% in H1FY2020. The PAT of the company declined 12% to Rs 570.47 crore in H1FY2021.