PNB Housing Finance Ltd Share Price – NSE /  BSE

Finance, Small Cap

Offering the rating rationale, India Ratings stated that the ratings factor the significant presence of PNB Housing Finance Limited in the mortgage space that has seen multiple business cycles. The ratings also factor in the granularisation of the loan book, with 98% of the book being retail, and almost complete rundown of the corporate book.

India Ratings expects its credit costs to be modest, given the retail and granular nature of the loan book.

The Rs 2,500 crore equity infusion in the form of rights issue offers the necessary growth capital to expand the franchisee in the granular mortgage space.

However, the performance of the affordable housing portfolio, which is at a nascent stage, remains a monitorable.

The agency further stated that a substantial proportion of granular stable funding in the borrowing mix, a sizeable expansion in the franchisee, gaining the market leadership, and expanding its presence across multiple geographies while maintaining its credit costs will be positive for the ratings.

However, the company’s inability to expand its franchisee on account of competitive headwinds or otherwise, elevated delinquency levels such that the gross NPA exceeding 5%, on a sustained basis, and a significant deterioration in PNBHF's liquidity buffer, on a sustained basis, could lead to a negative ratings action.

PNB Housing Finance is a deposit-accepting housing finance company registered under the National Housing Bank and the Companies Act, 1956. PNBHF provides housing loans to individuals for purchase, construction, repair, and upgrade of houses. It also provides loans against property, loans for commercial property, and loans for purchase of residential plots, and real estate development loans (no new sanctions of real estate development loans since April 2019).

The scrip fell 1.61% to currently trade at Rs 850.50 on the BSE.

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Profit before tax (PBT) stood at Rs 604.73 crore in Q2 FY25, up 19.25% as compared with Rs 507.11 crore in Q2 FY24.

In Q2 FY25, net interest income (NII) rose 1.2% YoY to Rs 669 core; lower growth in NII is due to declining impact of corporate book. Net interest margin (NIM) stood at 3.68% in Q2 FY25 as compared with 3.95% in Q2 FY24.

Disbursement stood at Rs 5,341 crore in Q2 FY25, up 27.8% YoY. Retail Segment grew by 28.2% YoY to Rs 5,341 crore.

Loan asset grew by 14.2%YoY to Rs 69,501 crore as on 30th September 2024, Retail loans grew by 16.2% YoY to Rs 67,970 crore as on 30th September 2024 while corporate loans are at Rs 1,531 crore as on 30th September 2024, reduced by 35.7% as compared with 30th September 2023.

Asset under Management (AUM) grew by 10.8% YoY to Rs 74,724 crore as on 30th September 2024.

Gross non performing asset (GNPA) stood at 1.24% as on 30th September 2024 as compared to 1.78% as on 30th September 2023 and 1.35% as on 30th June 2024. Net NPA stood at 0.84% as on 30th Sep 2024.

The company’s capital to risk asset ratio (CRAR) stood at 29.13% as on 30th September 2024, of which Tier I capital is 28.06% and Tier II is 1.07% as compared 30.38% as on 30th September 2023, of which Tier I capital was 28.50% and Tier II was 1.88%.

As on 30 September 2024, the company has 303 branches / outreach locations. Affordable business presence expanded to 160 branches.

Girish Kousgi, managing director & CEO said: “The company’s focused approach led to growth across all parameters. The Retail Asset grew by 16.2% YoY inching towards our stated guidance of 17% for FY25. Our affordable segment is performing well and crossed INR 3,000 crore in Loan Asset in October 2024. The Company registered retail disbursements growth of 28% YoY to INR 5,341 crore during the reported quarter i.e. Q2 FY25. The portfolio asset quality continues to improve with Gross NPA at 1.24% as on 30th Sept 2024.”

PNB Housing Finance is a deposit-accepting housing finance company, with second largest deposits outstanding within housing finance companies. The company provides housing loans to individuals for purchase, construction, repair, and upgrade of houses.

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Net profit of PNB Housing Finance rose 22.63% to Rs 469.68 crore in the quarter ended September 2024 as against Rs 383.00 crore during the previous quarter ended September 2023. Sales rose 5.68% to Rs 1878.68 crore in the quarter ended September 2024 as against Rs 1777.75 crore during the previous quarter ended September 2023.

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PNB Housing Finance will hold a meeting of the Board of Directors of the Company on 24 October 2024.

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