PNB Housing Finance Q2 results: Net profit dips 15% to Rs 312 crore

PNB Housing Finance NSE 2.25 % reported a 15 percent dip in net profit on lower business volume and deterioration in asset quality while the company is still in limbo about raising growth capital.

Net profit for the mortgage lender stood at Rs 312 crore in the September quarter against Rs 367 crore in the year-ago period. Pre provision operating Profit remained stable at Rs 575 crore compared to Rs 578 crore over the same period.

The company’s net interest margin stood at 3.5 percent as compared to 3.2 percent a year back.

Its loan disbursements nearly halved at Rs 2,444 crore in the second quarter compared with Rs 4,969 crore in the year-ago period. Its asset under management (AUM) shrunk to Rs 81,221 crore from Rs 89,471 crore.

The company said its loan disbursements during the quarter witnessed gradual pick up, primarily in the retail segment, and has reached 86 percent of pre-Covid-19 levels. Retail loans contribute 82 percent of the AUM.

Its gross NPA stood at 2.59 percent of loan assets while net NPA stood at 1.46 percent against 0.65 percent a year back.

The board of PNB Housing Finance has already approved to raise Rs 1800 crore through rights issue or preferential issue to augment its capital base. The decision will be subject to requisite approvals including those from shareholders through a general body meeting or postal ballots, the company said in the exchange filing. Its shares had climbed over 10% as investors anticipated the fundraise. Its promoter Punjab National Bank NSE 0.56 % is awaiting the regulator’s approval to pump in up to Rs 600 crore in the company, which has been looking to mobilize capital for over three quarters now.

ACE Digital Platform

“Demand for Housing Loan to improve,” said Hardayal Prasad, MD, CEO of the company. PNB Housing Finance is set to launch the housing finance industry’s first digital platform for loans offering. With the launch of its ACE digital platform, the company intends to leverage the technology to offer a convenient and contactless loan process for its customers.

The new digital platform automates the end-to-end loan process, including data collection and verification as well as lead generation and management through various digital channels.

Using this new platform, the customers can upload documents online leading to a backward integration of the verification process such as PAN, Aadhaar, digital signatures, and video-based KYC and geo-tagging. The information is then integrated into the company’s underwriting platform for further processing of the loan application.

For FY21, the company has set a target of 9-10% of new loans through its ACE digital platform as the pandemic will also motivate prospective customers to use this new digital channel for the loans they need. NSE india limited Shares

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