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The Board of Directors of PNB Housing Finance Limited today approved the Consolidated audited Financial Results for the quarter and financial year ended 31 st March 2023. The financial numbers are based on IndAS

Key Highlights

• Successfully completed Rights Issue of INR 2,493.76 Crore in May 2023. The issue was subscribed by around 1.21 times. The issue witnessed participation from all top 4 shareholders and other large domestic and foreign institutional investors. The proceeds from Rights Issue will be utilized to fund strategic growth plans and capitalize on the available growth opportunities.

• Retail Loan Asset grew by 10% YoY to INR 55,471 Crore as on 31st March 2023, which is 93.6% of Loan Asset

• Loan Asset is at INR 59,273 crore as on 31st March 2023 as compared to INR 58,034 crore as on 31st Dec 2022

• Gross NPA declined by 430 bps to 3.83% as on 31st Mar 2023 as compared to 8.13% as on 31 st March 2022

* Retail GNPA declined by 133 bps to 2.57% as on 31st March 2023 as compared to 3.89% as on 31st March 2022

• Affordable segment presence expanded to 82 branches & outreaches as on 31st Mar 2023

• Capital Risk Adequacy Ratio stood at 24.4% as on 31st March 2023; Tier I at 22.4%

• ICRA, CRISIL & India Ratings has upgraded the outlook to ‘Stable’ from ‘Negative’ in FY23

Financial performance (Q4 FY22-23 vs Q4 FY21-22 and Q3 FY22-23)

• Profit after Tax increased by 65% YoY and 4% QoQ to INR 279 crore.

• Net Interest Income improved by 57% YoY and declined by 19% QoQ to INR 593 crore. Excluding the one-off impact in Q3FY23, the NII declined by 5% QoQ

• Operating expenditure increased by 23% YoY and 15% QoQ to INR 143 crore

• Pre provision Operating Profit improved by 32% YoY and declined by 22% QoQ to INR 487 crore.

• Spread on loans declined by 118 bps to 2.65% in Q4 FY23 as compared to 3.83% in Q3 FY23. There was a “one-off” of INR 104 crore in Q3 FY23. After adjusting the “one-off” the Spread declined by 43 bps. The Company has increased its lending rates by ~30 bps in April 2023 that should help in arresting the decline.

• Net Interest Margin at 3.74% and Gross Margin, net of acquisition cost, at 3.83% in Q4 FY23

Financial performance (FY22-23 vs FY21-22)

• Profit after Tax is at INR 1,046 crore vs INR 836 crore registering an increase of 25% YoY

•Net Interest Income stood at INR 2,346 crore compared to INR 1,869 crore registering an increase of 26%.

• Operating Expenditure is at INR 520 crore vs INR 457 crore registering an increase of 14%.

• Pre provision Operating Profit increased by 24% to INR 2,052 crore from INR 1,660 crore.

• ECL provision as on 31 st Mar 2023 is INR 1,433 crore; total provision to assets ratio at 2.42%.

• Spread on loans stood at 2.81% compared to 2.12 % for FY22.

• Net Interest Margin stood at 3.73% as compared to 2.80% in FY22.

• Gross Margin, net of acquisition cost, is at 4.06% as compared to 3.16% in FY22.

• Return on Asset is at 1.61% as compared to 1.24% in FY22.

• Gearing, as on 31 st Mar 2023, reduced to 4.87 compared 5.37 as on 31st Mar 2022

• Return on Equity at 9.98% as compared to 8.92% for FY22

Business Operations

• The disbursements during FY23 grew by 33% YoY to INR 14,965 crore. For Q4 FY23 stood at INR 4,495 crore registering an increase of 22% YoY and 31% QoQ. - Retail disbursement was 99% of FY23 disbursements.

• Asset under Management (AUM) is at INR 66,617 crore as on 31 st Mar 2023 as compared to INR 66,983 crore as on 31 st Mar 2022

• The Loan Asset stood at INR 59,273 crore as on 31 st Mar 2023 as compared to INR 57,895 crore as on 31 st Mar 2022 and INR 58,034 crore 31 st Dec 2022.

* Retail loans are at INR 55,471 crore as on 31 st Mar 2023, registering an increase of 10% compared to 31 st Mar 2022.

* Corporate loans are at INR 3,802 crore as on 31 st Mar 2023, reduced by 48% as compared to 31 st Mar 2022.

Distribution and Service Network

• The Company has 189 branches / outreach locations and 22 decision making Hubs.

-          Affordable business presence expanded to 82 branches/outreaches as on 31 st Mar 2023 Asset Quality

• Gross Non-Performing Assets is at 3.83% as on 31 st Mar 2023 as compared to 8.13% as on 31st March 2022 and 4.87% as on 31st Dec 2022.

* Retail GNPA is 2.57% as on 31 st Mar 2023 as compared to 3.89% as on 31st March 2022 and 2.86% as on 31st December 2022.

* Corporate GNPA is 22.25% as on 31 st Mar 2023 as compared to 37.13% as on 31st March 2022 and 26.61% as on 31st Dec 2022.

• Net NPA stood at 2.76% as on 31 st Mar 2023. NNPA in Retail segment is at 1.74% and in Corporate segment at 18.24%

Capital to Risk Asset Ratio (CRAR)

• The Company’s CRAR stood at 24.43% as on 31 st Mar 2023, of which Tier I capital was 22.04% and Tier II was 2.03% as compared to 23.40% as on 31 st Mar 2022, of which Tier I capital was 20.73% and Tier II capital was 2.67%.

Commenting on the performance Mr. Girish Kousgi, Managing Director & CEO said: "We are pleased to report that this fiscal year has been incredibly eventful for us. After 13 quarters, we have achieved the highest retail disbursement and loan asset as an outcome of our ongoing efforts to build the retail business. We have also witnessed a remarkable improvement in the asset quality which reduced by 52% year-on-year. As another milestone we have successfully concluded our rights issue, which received an overwhelming response resulting in 1.21x subscription. This demonstrates the investors' confidence in the Company. The infusion of capital will enable us to capitalise on the available growth opportunities."

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