PNB Housing Finance Q4 - Business Transformation Underway: ICICI Securities
Apartment buildings. (Photographer SeongJoon Cho/Bloomberg)

PNB Housing Finance Q4 - Business Transformation Underway: ICICI Securities

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ICICI Securities Report

PNB Housing Finance Ltd.’s earnings at Rs 1.3 billion were down 45% QoQ due to higher provisioning and run-down in assets under management.

Reported stage-III (at 4.44%) settled near to Q3 FY21 proforma stage-III.

However, retail stage-II at 5.1%, corporate stage-II at 10% and restructuring of more than 2.7% can make the balance sheet vulnerable to incremental stress.

Strategically, business transformation is underway with a new agenda to-

  1. target mass retail housing, build high yield ‘Unnati’ portfolio;
  2. drive efficiency through cost management and digital drive; and
  3. strengthen the team and improve gearing.

This transition will moderate growth, though risk-adjusted return will be better over the medium term.

Click on the attachment to read the full report:

ICICI Securities PNB Housing Q4FY21 Result Update.pdf

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