PNB Housing Finance, an arm of state-owned Punjab National Bank, on Monday (October 23) reported a 45.9% year-on-year (YoY) jump in net profit at ₹383 crore for the second quarter that ended September 30, 2023.

In the corresponding quarter last year, PNB Housing Finance posted a net profit of ₹ 262.6 crore. In the reporting quarter, the total revenue stood at ₹1,777.8 crore, up 5.5% from ₹1,684.4 crore in the corresponding period of the preceding fiscal.

The net interest income (NII) improved by 2% year-on-year and 5% quarter-on-quarter to ₹661 crore. In Q2 FY23, there was a one-off of ₹160 crore on assigned loans due to benchmark rate resets, excluding one-off net interest income, which grew by 35% year-on-year.

The operating expenditure increased by 24% year-on-year and 12% quarter-on-quarter to ₹168 crore. Pre-provision operating profit shrank by 5% year-on-year and grew 9% quarter-on-quarter to ₹552 crore. Excluding a one-off in Q2 FY22-23 as mentioned earlier, it grew by 30% year-on-year.

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The bank's net interest margin stood at 3.95% and the gross margin (net of acquisition cost) stood at 4.18% in Q2 FY24. The credit cost stood at 26 bps in Q2 FY24 as against 151 bps in Q2 FY23 and 36 bps in Q1 FY24. Profit before tax (PBT) PBT improved by 49% year-on-year and 14% quarter-on-quarter to ₹507 crore.

The gross non-performing assets (GNPA) ratio stood at 1.78%, showcasing a reduction from the previous year's figure of 6.06% and a slight improvement from 3.76% reported as of June 30, 2023.

Retail GNPA, as of September 30, 2023, was reported at 1.74%, which represents a noteworthy decrease from 3.39% recorded in the same period of the previous year and an improvement from 2.49% reported at the end of June 2023.

Corporate GNPA also exhibited a substantial improvement, with a ratio of 2.86% for the reporting period, compared to a considerably higher figure of 30.37% as of September 2022 and 24.99% at the end of June 2023.

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Furthermore, net non-performing assets (NNPA) stood at 1.19% as of September 30, 2023. A detailed breakdown reveals that NNPA in the retail segment stood at 1.20%, while in the corporate segment, it is even lower at 0.95%.

The results came after the close of the market hours. Shares of PNB Housing Finance Ltd ended at ₹718.30, down by ₹28.60, or 3.83%, on the BSE.