PNB Housing Finance on Thursday reported 10 per cent decline in consolidated net profit to ₹257.2 crore in the first quarter ended June 30, mainly due to lower disbursement amid COVID-19 pandemic.

The housing financier, promoted by Punjab National Bank, had reported net profit of ₹284.5 crore in June quarter of 2019-20.

The company’s net interest income also slipped 22 per cent to ₹487.8 crore during April-June, as against ₹ 625.5 crore in year-ago period, it said in a regulatory filing.

Total income during the quarter fell to ₹1,872.33 crore from ₹2,232.58 crore.

“During the quarter, the COVID-19 pandemic had a significant impact on the disbursements, resulting in the lowest quarterly disbursements in more than 24 quarters. However, with all our branches now operational, we are witnessing an increasing trend in disbursement on a month-on-month basis,” Neeraj Vyas, Managing Director & CEO, PNB Housing Finance, said.

On the asset quality side, the company said its gross non-performing assets (NPA) at AUM level was 2.32 per cent, while 2.76 per cent at loan assets level in the first quarter. Net NPA stood at 1.67 per cent of the loan assets against 0.67 per cent a year ago.

PNB Housing witnessed sharp decline in its disbursements during the quarter to ₹694 crore, compared to ₹7,634 crore in year-ago period.

Total borrowings stood at ₹67,283 crore as on June 30, 2020 compared to ₹72,261 crore a year ago, registering a decline of 7 per cent.

However, the deposit portfolio grew by 5 per cent to ₹16,203 crore during the quarter on higher retail penetration. It was ₹15,446 crore during the same period last year, PNB Housing said.

Its total assigned loans outstanding as on June 30, 2020 was ₹15,486.

The housing finance company said capital to risk weighted assets ratio (CRAR) stood at 18.05 per cent as on June 30, 2020, of which Tier I capital was 15.33 per cent and Tier II capital was 2.72 per cent.

“The company has rolled out its business plan for the 2020-21 and will continue to focus on the lower risk weighted retail assets, resulting in higher percentage of retail book in the total AUM,” Vyas said.

As part of cost rationalisation, the company has merged two branches during the quarter and will merge more over next few months, he said.

“During the year, the company will continue its focus on recovery, liquidity, sell down of the corporate book, cost rationalisation and strengthen its balance sheet by further reduction in gearing,” he added.

The company’s loan assets de-grew by 10 per cent year-on-year to ₹ 68,009 crore by June-end, as against ₹75,933 crore a year ago.

Assets under Management (AUM) stood at ₹83,495 crore, down from ₹ 88,333 crore, registering a decline of 5 per cent, with share of retail and corporate loan at 82 per cent and 18 per cent, respectively.

The share of corporate loan has come down from 20 per cent during the quarter as part of PNB Housing Finance’s concerted effort to sell down its corporate book.

On moratorium being provided to customers as per the RBI guidelines, the company said it fell to nearly 39 per cent of the AUM by the end of June quarter as against 56 per cent during phase 1 of the lockdown.

Retail loans under moratorium account for 29 per cent of the retail AUM, compared to 49 per cent in phase 1.

Stock of PNB Housing Finance closed 4.99 per cent higher at ₹ 210.25 on the BSE.

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