PNB Housing Finance Q2 Results | Net profit jumps 46% to ₹383 crore on improved asset quality

The operating expenditure increased by 24% year-on-year and 12% quarter-on-quarter to ₹168 crore. Pre-provision operating profit shrank by 5% year-on-year and grew 9% quarter-on-quarter to ₹552 crore. Excluding a one-off in Q2 FY22-23 as mentioned earlier, it grew by 30% year-on-year.

The bank's net interest margin stood at 3.95% and the gross margin (net of acquisition cost) stood at 4.18% in Q2 FY24. The credit cost stood at 26 bps in Q2 FY24 as against 151 bps in Q2 FY23 and 36 bps in Q1 FY24. Profit before tax (PBT) PBT improved by 49% year-on-year and 14% quarter-on-quarter to ₹507 crore.

The gross non-performing assets (GNPA) ratio stood at 1.78%, showcasing a reduction from the previous year's figure of 6.06% and a slight improvement from 3.76% reported as of June 30, 2023.

Retail GNPA, as of September 30, 2023, was reported at 1.74%, which represents a noteworthy decrease from 3.39% recorded in the same period of the previous year and an improvement from 2.49% reported at the end of June 2023.

Corporate GNPA also exhibited a substantial improvement, with a ratio of 2.86% for the reporting period, compared to a considerably higher figure of 30.37% as of September 2022 and 24.99% at the end of June 2023.

Furthermore, net non-performing assets (NNPA) stood at 1.19% as of September 30, 2023. A detailed breakdown reveals that NNPA in the retail segment stood at 1.20%, while in the corporate segment, it is even lower at 0.95%.

The results came after the close of the market hours. Shares of PNB Housing Finance Ltd ended at ₹718.30, down by ₹28.60, or 3.83%, on the BSE.