Assets Under Management AUM

PNB Housing Finance Q4 FY22 PAT increases by 34% YoY to Rs 170 cr

PNB Housing Finance recorded a 33.5% increase in its consolidated net profit to Rs 169.54 crore in Q4 FY22 from Rs 127.03 crore in Q4 FY21.

Total revenue declined by 22.3% to Rs 1,425.83 crore in the fourth quarter from Rs 1,833.90 crore a year earlier. Pre-tax profit in Q4 FY22 stood at Rs 223.78 crore, up 18.9% from Rs 188.14 crore in Q4 FY21.

Net interest income decreased by 37% to Rs 377 crore in Q4 FY22 from Rs 593 crore in Q4 FY21. Net interest margin for Q4 March 2022 was 2.3% compared to 3.3% for Q4 March 2021.

During the fourth quarter of FY22, there was a net income reversal of Rs 58 crore on derecognized loans due to the impact of spread contraction and liquidations, while during the In the fourth quarter of FY21, there was a net positive impact of Rs 58 crore on derecognized loans due to the lower number of assignees. ‘MCLR in Q4 FY21-22, there is an IndAS adjustment resulting in a reversal of net interest income of Rs 70 crore.

Pre-provision operating profit fell 31% to Rs 369 crore in the fourth quarter of FY22 from Rs 539 crore in the same period last year.

Operating expenses fell by 13% to Rs 126 crore in the March quarter from Rs 144 crore in the corresponding period last year. Gross margin, net of acquisition cost, was 3% in Q4 FY22, compared to 3.7% in Q4 FY21.

On an annual basis, consolidated net profit fell by 10% to Rs 836.48 crore on an 18.7% drop in total revenue to Rs 6,200.73 crore in the financial year ended March 2022 compared to for the year ended March 2021.

Disbursements in FY21-22 stood at Rs 11,246 crore compared to Rs 10,445 crore in FY 20-21, registering an increase of 8% year-on-year. Retail disbursements accounted for 97% of total disbursements in FY21-22.

Assets Under Management (AUM) is at Rs 65,977 crore as of March 31, 2022 with retail book at 89% of AUM compared to 84% as of March 31, 2021. Corporate AUM decreased by 39% in year-over-year to reach Rs 7,159 crore as of March 31, 2022 compared to Rs 11,786 crore as of March 31, 2021. The decline in corporate assets under management is mainly due to accelerated sale/payments and no new sanctions .

Gross non-performing assets (NPA) at the AUM level are 6.99% and 7.61% for loan assets as of March 31, 2022.

Total borrowings stood at Rs 53,221 crore as of March 31, 2022 compared to Rs 59,942 crore as of March 31, 2022, registering a decline of 11.21% over the year. Total loan assignments outstanding as of March 31, 2022 were Rs 9,088 crore compared to Rs 12,214 crore as of March 31, 2021. No new loan assignments are made during FY22. deposits increased by 3.96% to Rs 17,807 crore as of March 31, 2022 from Rs 17,129 crore as of March 31, 2021.

The company’s CRAR based on IndAS stood at 23.4% as of March 31, 2022, of which Tier I capital was at 20.7%. Risk-weighted assets as of March 31, 2022 stood at Rs 40,604 crore.

Meanwhile, the company’s board of directors has approved a capital increase of up to Rs 2,500 crore via. issue of shares with subscription rights on March 9, 2022.

As advised by various state and central governments, PNB Housing Finance has complied with all guidance issued regarding COVID-19. As of March 31, 2022, Rs 2,420 crore (equivalent to 4.3% of loan assets) has been restructured under the RBI’s resolution framework for COVID-19 related stress. Till March 31, 2022, the company has disbursed Rs 498 crore under the Emergency Credit Line Guarantee Scheme (ECLGS).

Commenting on the fourth quarter performance, Hardayal Prasad, Managing Director (MD) and CEO of PNB Housing Finance, said: “With the broader improvement in demand from the property sector, the company recorded robust growth in disbursements to 31 %QoQ. The focus on the retail segment drove the growth in loan assets despite the decline in business loan assets during the quarter. Additionally, focused recovery efforts led to a 27% drop in the retail segment’s GNPA. The company would continue to focus on growing its assets while improving the quality of its assets.

Shares of PNB Housing Finance fell 0.65% to Rs 388.35 on BSE. PNB Housing Finance is a deposit-taking housing finance company, with the second largest open deposit among housing finance companies.

The company provides housing loans to individuals for the purchase, construction, repair and modernization of homes. Currently, it has 100 branches present in 70 cities, 40 proximity sites and 22 hubs and also opened 29 new Unnati sites in Tier II and III cities in FY21-22.

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