PNB Housing Finance on Tuesday reported a 25 percent decline in net profit at Rs 235 crore in the three months ended September. The housing finance company had posted a net profit of Rs 313 crore in the corresponding period a year ago.
PNB Housing Finance, promoted by state-owned Punjab National Bank (PNB), also said its board scrapped the Rs 4,000 crore preferential issue. The company had wanted to raise equity capital to support the growth.
Among the other key financials during Q2FY22, the company's net interest margin stood at 3 per cent compared to 3.5 per cent in the year-ago period. "Net interest income stood at Rs 503 crore compared to Rs 651 crore, registering a decline of 23 per cent," according to a release.
The company's board of directors, on October 14, decided not to proceed with the preferential issue of Rs 4,000 crore that was approved on May 31. The company has filed an application to withdraw its appeal to the Securities Appellate Tribunal.
"Further to above, the Supreme Court on 20th October 2021, dismissed the appeal filed by Sebi stating that since an application has been moved for withdrawal of the appeal before the Securities Appellate Tribunal, the appeal with SC becomes infructuous," it added. The board believes that the current situation of protracted litigation, continuation of Securities Appellate Tribunal interim order and pending regulatory approvals is not in the best interests of the company and its stakeholders, PNB Housing Finance said.
During the September quarter, there was a net income reversal of Rs 61 crore on derecognised loans due to unwinding impact of spread contraction. In the year-ago period, there was a net positive impact of Rs 105 crore on derecognised loans due to fall in buying banks' MCLR.
