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The Board of Directors of PNB Housing Finance Limited today approved the Consolidated Unaudited Financial Results for the quarter ended 30th June 2023. The accounts have been subjected to a limited review by the Company’s Statutory Auditors in line with the regulatory guidelines. The financial numbers are based on IndAS

Key Highlights

· The Company has successfully completed its 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 viz PNB, Carlyle, Ares SSG, General Atlantic and other large domestic and foreign institutional investors. The proceeds from Rights Issue are being utilized to fund strategic growth plans and capitalize on the available growth opportunities.

· Retail Loan Asset grew by 11% YoY to INR 56,978 Crore as on 30th June 2023, which is 94% of Loan Asset

· Loan Asset crossed INR 60,000 crore mark to INR 60,395 crore as on 30th June 2023 registering 5% growth YoY

· Gross NPA declined by 259 bps to 3.76% as on 30th June 2023 as compared to 6.35% as on 30th June 2022

. Retail GNPA declined by 124 bps to 2.49% as on 30th June 2023 as compared to 3.73% as on 30th June 2022

· Affordable segment presence expanded to 88 branches & outreaches as on 30th June 2023

· Capital Risk Adequacy Ratio stood at 29.93% as on 30th June 2023; Tier I at 28.15%

· Care Ratings has upgraded the outlook on various financial facilities / instruments to ‘Positive’ from ‘Stable’ in Jun’23 and reaffirmed the rating at CARE AA.

· Profit after Tax increased by 48% YoY and 24% QoQ to INR 347 crore.

· Highest ever Return on Asset in a decade by the Company at 2.07% in Q1FY23 as compared to 1.61% in FY23

Financial performance (Q1 FY23-24 vs Q1 FY22-23 and Q4 FY22-23)

· Net Interest Income improved by 70% YoY and 6% QoQ to INR 629 crore.

· Operating expenditure increased by 26% YoY and 5% QoQ to INR 150 crore.

· Pre provision Operating Profit improved by 41% YoY and 4% QoQ to INR 507 crore.

· Yield at 10.59% in Q1 FY24 as compared to 8.63% in Q1 FY23 and 10.41% in Q4 FY23.

· Spread on loans at 2.62% in Q1 FY24 as compared to 1.42% in Q1 FY23 and 2.65% in Q4 FY23.

· Net Interest Margin stood at 3.86% and Gross Margin, net of acquisition cost, stood at 3.91% in Q1 FY24.

· Credit Cost at 36bps in Q1 FY24 as compared to 31bps in Q1 FY23 and 89bps in Q4 FY23.

· PBT improved by 44% YoY and 30% QoQ to INR 447 crore

Business Operations

· The disbursements during Q1 FY24 grew by 7% YoY to INR 3,686 crore.

· Retail disbursement grew by 8% YoY to INR 3,667 crore; 99% of total disbursements

·  Asset under Management (AUM) grew by 2% YoY to INR 67,340 crore as on 30th June 2023

· The Loan Asset stood grew by 5% YoY and 2% QoQ to INR 60,395 crore as on 30th June 2023

· Retail loans grew by 11% YoY and 3% QoQ to INR 56,978 crore as on 30th June 20239.

· Corporate loans are at INR 3,416 crore as on 30th June 2023, reduced by 45% as compared to 30th June 2022.

Distribution and Service Network

· The Company has 198 branches / outreach locations

.  Affordable business presence expanded to 88 branches/outreaches as on 30th June 2023

Asset Quality

. Gross Non-Performing Assets is at 3.76% as on 30th June 2023 as compared to 6.35% as on 30th June 2022 and 3.83% as on 31st March 2023.

. Retail GNPA is 2.49% as on 30th June 2023 as compared to 3.73% as on 30th June 2022 and 2.57% as on 31st March 2023.

. Corporate GNPA is 24.99% as on 30th June 2023 as compared to 28.03% as on 30th June 2022 and 22.25% as on 31st March 2023. Increase in corporate GNPA from 31st March 2023 is on account of IndAS adjustment.

· Net NPA stood at 2.59% as on 30th June 2023. NNPA in Retail segment is at 1.63% and in Corporate segment at 19.54%.

Capital to Risk Asset Ratio (CRAR)

· With capital raise, the Company’s CRAR increased to 29.93% as on 30th June 2023 as compared to 23.91% as on 30th Jun 2022. As on 30th June 2023, Tier I capital was 28.15% and Tier II was 1.78%

Commenting on the performance Mr. Girish Kousgi, Managing Director & CEO said:

“The first quarter of this financial year has kick-started on a positive note, as we have achieved growth across all key business and financial parameters. Owing to our ongoing efforts in the retail business, our Loan book crossed INR 60,000 crore mark. We have also witnessed improvement in asset quality, resulting in higher profitability. This quarter the Company's annualised ROA is at 2.07%, highest in a decade.

With a successful completion of the Rights Issue, we now possess adequate capital to fuel our growth. We are optimistic about the prevailing real estate demand, and with our focus on identified strategic objectives, we look forward to capitalizing on available market opportunities and accelerating our growth journey ahead.”

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