Shares of PNB Housing Finance gained as much as 8 percent on Monday after the company announced that it has recovered one of its large non-performance loans.
Over the weekend, PNB Housing Finance said that the company has “successfully resolved and fully recovered” its large corporate non-performing account worth Rs 784 crore, which translates into around 1.3 percent of its total loan asset as on June 30, 2023.
As of June 2023, the gross non-performing assets of the company stood at Rs 2,270 crore (3.76 percent of loan asset), while loan assets stood at Rs 60,395 crore.
In a statement to exchanges, PNB Housing Finance said, “The account has been resolved on 19 August 2023 through an ARC (asset reconstruction company) sale under Swiss Challenge method as per the Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021.”
For the recently concluded June quarter, PNB Housing Finance had reported a 48 percent increase in consolidated net profit to Rs 347 crore compared with Rs 235 crore a year ago. It was also 28 percent higher than the net profit of Rs 280 crore during the March quarter.
Shares of PNB Housing are trading 5.8 percent higher at Rs 671.75. The stock has gained 40 percent on a year-to-date basis and has more than doubled over the last 12 months, gaining 128 percent.
Gains of PNB Housing are on the back of strong volumes. The stock is trading with gains that are nearly 12 times higher than its 20-Day Average at this time of the day.
First Published: Aug 21, 2023 10:21 AM IST
