PNB Housing Finance has reported a growth of 64.73 per cent in its net consolidated profit during the quarter ended March 31, 2023. Its profit after tax stood at Rs 279.28 crore in Q4 FY23 as against Rs 169.54 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
The company’s net consolidated total income stood at Rs 1,637.72 crore in Q4 FY23, a growth of 14.86 per cent from Rs 1,425.83 crore it registered in the similar quarter last year.
“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,” said Girish Kousgi, managing director & CEO of the company.
During Q4 FY23, the company has sold “Assets held far Sale” and “written off loan assets” to bank (permitted transferee). The aggregate amount of assets sold were Rs321.83 crore having a net book value of Rs 82.24 crore for a consideration of Rs 68 crore, the company said in the regulatory filing.
Pursuant to the board of directors approval dated March 08, 2022 for issue of equity shares upto by way of rights issue (Rights Issue) for an amount not exceeding Rs 2,500 crore, the company had filed letter of offer on March 29, 2023. The issue opened for subscription on April 13, 2023 and closed on April 27, 2023.
The Rights Issue was oversubscribed 1.21 times. The board on May 4, 2023 approved the allotment at 9,06,81,828 fully paid-up equity shares at a price of Rs 275 per equity share (including premium of Rs 265- per equity share) aggregating to Rs 2,493.76 crore to the eligible shareholders.
The company successfully completed Rights Issue of Rs 2,493.76 crore in May 2023. The issue witnessed participation from all top four 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, it said in the media release.
During the quarter ended March 31, 2023, the company has allotted 62,554 equity shares of Rs 10 each pursuant to exercise of stock options/restricted stock units by employees.
As on March 31, 2023, the company’s net worth stood at Rs 10,952.57 crore, debt-equity ratio was 4.90, total debts to total assets was 0.80, net profit margin was 17.38%, gross non-performing assets (NPAs) declined by 430 bps to 3.83% and net NPAs was 2.76%. Its Capital Risk Adequacy Ratio stood at 24.4% as on March 31, 2023.
Retail loan asset grew by 10% year-on-year to Rs 55,471 crore as on March 31, 2023, which is 93.6% of loan asset, Loan asset is at Rs 59,273 crore as on March 31, 2023 as compared to Rs 58,034 crore as on December 31, 2022. 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 Rs 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, it said in the media release.
ECL provision as on March 31, 2023 is Rs 1,433 crore; total provision to assets ratio at 2.42%, spread on loans stood at 2.81% compared to 2.12 % for FY22, return on asset is at 1.61% as compared to 1.24% in FY22 and return on equity at 9.98% as compared to 8.92% for FY22.
The disbursements during FY23 grew by 33% y,ear-on-year to Rs 14,965 crore. For Q4 FY23 stood at Rs 4,495 crore registering an increase of 22% year-on-year and 31% quarter-on-quarter. Asset under Management (AUM) is at Rs 66,617 crore as on March 31, 2023 as compared to Rs 66,983 crore as on March 31, 2022.