The net interest margin declined to 2.72% in the quarter ended September 2018, compared with 2.74% in the preceding quarter and 3.01% in the corresponding quarter last year. Net interest income for the quarter ended September 2018 increased 25% to Rs 463 crore as against Rs 369 crore in the same period of the previous year.

Income from operations increased 42% to Rs 1808.26 crore in the quarter ended September 2018. Interest expense moved up 47% to Rs 1228.86 crore, while other expenses (including staff cost of Rs 80.89 crore and other expenses of Rs 53.43 crore) increased 62% to Rs 134.32 crore. Ensuing Gross profit advanced 25% to Rs 445.08 crore.

The depreciation increased to Rs 7.91 crore in Q2FY2019 against Rs 5.25 crore in Q2FY2018. The provision and write offs stood at Rs 64.69 crore against Rs 75.60 crore in same quarter last year. PBT increased 35% to Rs 372.48 crore.

Effective tax rate rose to 32.08% bps on yoy basis from 31.13%. The profit after tax of the company improved 33% to Rs 252.99 crore in the quarter ended September 2018.

Loan book and disbursements

The AUM of the company surged 43% to Rs 73482 crore end September 2018 over September 2017. The loan portfolio of the company increased 37% to Rs 66792 crore, while the loans sold outstanding increased 160% to Rs 6690 crore end September 2018 over September 2017. The disbursements increased 14% to Rs 8405 crore in the quarter ended September 2018.

The deposits with the company have increased 20% to Rs 12457.5 crore at end September 2018.

Asset quality

Gross NPA ratio rose marginally to 0.45% at end September 2018 from 0.43% a quarter ago and 0.34% a year ago. Meanwhile, Net NPA ratio also increased to 0.35% at end September 2018 from 0.33% a quarter ago.

In absolute terms, GNPA stood at Rs 308.62 crore and NNPA at Rs 242.49 crore at end September 2018.

Book value of the company stood at Rs 409.4 per share, while adjusted book value was at Rs 394.9 per share at end September 2018.

Half Yearly Financial Performance:

For the half year ended September 2018 (H1FY2019), PNB Housing Finance reported 42% rise in Income from operations at Rs 3456.37 crore. Interest expense moved up 47% to Rs 2328.61 crore, while other expenses increased 48% to Rs 256.90 crore. Ensuing Gross profit increased 29% to Rs 871.06 crore. Depreciation increased 42% to Rs 14.63 crore, while provision and write offs declined 24% to Rs 108.70 crore. PBT improved 43% to Rs 747.73 crore. Effective tax rate stood at 31.96% H1FY2019, compared with 30.93% in H1FY2018. The PAT of the company improved 41% to Rs 508.78 crore in H1FY2019.