PNB Housing Finance Q2 Review - Still In Consolidation Mode: Motilal Oswal
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Motilal Oswal Report
PNB Housing Finance Ltd. reported a Q2 FY22 profit after tax of Rs 2.3 billion (9% miss), which declined by 25% YoY and 3% QoQ.
The miss was driven by lower-than-estimated net interest income on account of income reversals due to accelerated run-off in the securitised pool of loans and partly mitigated by lower credit costs.
NII fell 25% YoY and 9% QoQ to Rs 4.7 billion (9% below our estimate of Rs 5.1 billion). Provisions at Rs 1.4 billion were below our estimate of Rs 1.8 billion.
PNB Housing Finance's disbursements rose 21% YoY to Rs 29.6 billion. This led to assets under management declining by 3% QoQ and 14% YoY to Rs 698 billion.
Gross/net non performing asset fell ~10 basis points/30 bps QoQ to 5.9%/3.3% (as a percentage of loans), with stage-III provision coverage ratio at 44%.
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