Net interest income fell 25.6% to Rs 439 crore in Q3 FY22 from Rs 590 crore in Q3 FY21. Net interest margin stood at 2.7% in Q3 FY22 as compared to 3.2% in Q3 FY21. Excluding the unwinding impact on derecognized loans the net interest margin is at 3.2% for Q3 FY22.

Profit before tax in Q3 FY22 stood at Rs 254 crore, down by 13.7% from Rs 294 crore in Q3 FY21.

The housing financier said that during Q3 FY22, there is a net income reversal of Rs 79 crore on derecognized loans due to unwinding impact of spread contraction and run offs whereas during Q3 FY21, there was a net positive impact of Rs 31 crore on derecognized loans due to fall in buying banks' MCLR resulting in spread widening and income from fresh securitization of Rs 396 crore.

Operating expenditure increased by 15% to Rs 116 crore as against Rs 101 crore. The operating expenditure on QoQ basis has registered a decline of 2% from Rs 119 crore in Q2 FY22.

Gross margin, net of acquisition cost, stood at 3% in Q3 FY22 compared to 3.5% in Q3 FY21.

Separately, PNB Housing Finance said that Kapish Jain, chief financial officer and key managerial personnel of the company has tendered his resignation. He is currently serving his notice period, which is upto 7 April 2022.

PNB Housing Finance is a deposit-accepting housing finance company, with second largest deposits outstanding within housing finance companies. The company provides housing loans to individuals for purchase, construction, repair, and upgrade of houses.