The net interest margin was steady at 3.14% in the quarter ended June 2019, compared with 3.18% in the preceding quarter and improved from 2.74% in the corresponding quarter last year. Net interest income for the quarter ended June 2019 increased 44% to Rs 625 crore as against Rs 433 crore in the same period of the previous year.

Income from operations increased 35% to Rs 2230.93 crore in the quarter ended June 2019. Interest expense moved up 38% to Rs 1512.68 crore, while other expenses (including staff cost of Rs 67.97 crore and other expenses of Rs 57.35 crore) increased 2% to Rs 125.32 crore. Ensuing Gross profit advanced 40% to Rs 594.58 crore.

The depreciation jumped to Rs 16.39 crore in Q1FY2020 against Rs 6.72 crore in Q1FY2019. The provision and write offs zoomed to Rs 164.16 crore against Rs 44.01 crore in same quarter last year. PBT increased 10% to Rs 414.03 crore.

Effective tax rate eased to 31.3% bps on yoy basis from 31.8%. The profit after tax of the company improved 11% to Rs 284.47 crore in the quarter ended June 2019.

Loan book and disbursements

The AUM of the company surged 29% to Rs 88333 crore end June 2019 over June 2018. The loan portfolio of the company increased 19% to Rs 75933 crore, while the loans sold outstanding increased 165% to Rs 12400 crore end June 2019 over June 2018. The disbursements declined 22% to Rs 7634 crore in the quarter ended June 2019.

The deposits with the company have increased 32% to Rs 15446 crore at end June 2019.

Asset quality

Gross NPA ratio increased to 0.85% at end June 2019 from 0.48% a quarter ago and 0.43% a year ago. Meanwhile, Net NPA ratio also increased to 0.67% at end June 2019 from 0.38% a quarter ago.

In absolute terms, GNPA stood at Rs 645 crore and NNPA at Rs 509 crore at end June 2019.

Book value of the company stood at Rs 465.8 per share, while adjusted book value was at Rs 435.6 per share at end June 2019.

Annual Financial Performance:

For the year ended March 2019 (FY2019), PNB Housing Finance reported 40% rise in Income from operations at Rs 7679.32 crore. Interest expense moved up 46% to Rs 5166.37 crore, while other expenses increased 35% to Rs 562.14 crore. Ensuing Gross profit increased 27% to Rs 1954.71 crore. Depreciation increased 30% to Rs 31.37 crore, while provision and write offs declined 32% to Rs 188.95 crore. PBT improved 40% to Rs 1734.39 crore. Effective tax rate stood at 31.30% FY2019, compared with 31.87% in FY2018. The PAT of the company improved 42% to Rs 1191.52 crore in FY2019.