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PNB Housing Finance reported a 25% increase in net profit to INR 433 crore for Q1 June 2024, up from INR 347 crore the previous year. Total income rose to INR 1,832 crore, with interest income at INR 1,739 crore. Net interest income grew 4% to INR 651 crore, though the net interest margin declined to 3.65% from 3.86%. The gross NPA reduced to 1.3%, and the net NPA fell to 0.92%. Total disbursements increased 19% to INR 4,398 crore, with retail disbursements making up 99%. The company continues to demonstrate strong financial performance and strategic growth.
PNB Housing Finance announced a 25% increase in net profit, reaching INR 433 crore in the first quarter ending June 2024, compared to INR 347 crore in the same period the previous year. The company's total income for the quarter increased to INR 1,832 crore, compared to INR 1,708 crore in the same period of the prior fiscal year, as detailed in a regulatory filing. Advertisement
Interest income in Q1 rose to INR 1,739 crore from INR 1,667 crore a year ago. Net interest income grew by 4%, amounting to INR 651 crore at the end of the first quarter of June 2024. Despite this growth, the net interest margin decreased to 3.65% from 3.86% in the first quarter of the previous year. The gross non-performing assets (NPAs) reduced to 1.3%, down from 3.76% at the end of June 2023.
Similarly, the net NPA fell significantly to 0.92% from 2.59% the previous year. While the demand for premium housing remained strong, the affordable segment faced some pressure due to high interest rates. Home financiers experienced robust disbursement during the quarter, with homebuyers anticipating a rate cut later in the year. PNB Housing, a unit of the state-run lender Punjab National Bank, reported a 19% increase in total disbursements, amounting to INR 4,398 crore.
Retail disbursements constituted 99% of the total, with emerging markets and the affordable segment contributing 33% of the retail disbursement for the quarter. PNB Housing Finance strategically curtailed corporate loans over recent quarters to mitigate rising problematic debt in that segment, thereby enhancing its bottom line. Following the announcement, the company's shares initially surged by 2.6% and eventually settled up by 0.6%.
In summary, PNB Housing Finance demonstrated strong financial performance in the first quarter of 2024, with notable increases in net profit and total income. Despite facing challenges in the affordable housing segment, the company maintained strong disbursement levels and improved its NPA ratios. The strategic reduction in corporate loans has further strengthened its financial health. The company's extensive branch network, particularly in the affordable housing segment, positions it well for continued growth in the Indian housing finance market.
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