PNB Housing Finance Q4FY22 result : GNPA declined 27% QOQ, PAT up 33.46% YoY but fell 10.05% in FY22-21

Gross Non-Performing Assets (GNPA) at an AUM level is at 6.99% while it is 7.61% at Loan Assets (as per IndAS gross stage 3 is 8.12%) as on 31st March 2022. Retail GNPA reduced by 140 bps QoQ to 3.56% as on 31st March 2022

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PNB Housing Finance Limited is a registered housing finance company with National Housing Bank (NHB). It was incorporated under the Companies Act, 1956 and commenced its operations on November 11, 1988. PNB Housing is promoted by Punjab National Bank (PNB). It came out with a public issue of equity shares in November 2016. The company has posted its Q4FY22 and year ended financial results today, the details are as below :

(I) Audited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹1,425.83 crore in the quarter ended on March 31, 2022 as against ₹1,833.90 crore in the corresponding quarter ended last year on Mar 31, 2021, decreased by 22.25%.

The company has posted a consolidated Net Profit of ₹169.54 crore in the quarter ended on March 31, 2022 as against ₹127.03 crore in the corresponding quarter ended in last year on Mar 31, 2021. The PAT surges up by 33.46%.

The status of the EPS of the company stood at ₹10.03 as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹7.55, up by 32.85%.

₹*Mar 31, 2022 (Q4FY22)Dec 31, 21 (Q3FY22)Mar 31, 21 (Q4)
Total Income1,425.831495.611,833.90
Total Expenses1202.0512410881645.76
PBT /(Loss)223.78223.73188.14
Total Tax /(credit)54.2465.2831.11
PAT /(Loss) [to the owners]169.54188.45127.03
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹6,200.73 crore in the financial year ended on March 31, 2022 as against ₹7,624.08 crore for the financial year ended on Mar 31, 2021, decreased by 18.67%.

The company has posted a consolidated Net Profit of ₹836.48 crore in the financial year ended on March 31, 2022 as against ₹929.90 crore for the financial year ended on March 31, 2021. The PAT surges down by 10.05%.

The status of the EPS of the company stood at ₹49.53 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹55.26, down by 10.37%.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income6,200.737,624.08
Total Expenses5116.776417.05
PBT /(Loss)1083.961207.13
Total Tax /(credit)247.48277.13
PAT /(Loss)836.48929.90
*figures are in Crores

(III) Key Highlights about the Performance :

Q4 FY21-22

  • Disbursements grew by 31% QoQ to INR 3,698 crore
  • Loan Asset grew to INR 56,889 crore as on 31st March 2022 compared to INR 56,798 crore as on 31st December 2021
  • Retail Loan Asset increased by INR 693 crore to INR 49,730 crore
  • Corporate Loan Asset reduced by INR 602 crore to INR 7,159 crore
  • Retail Gross NPA declined by 27% QoQ to INR 1,771 crore
  • Gearing as on 31st March 2022 improved by 20 bps QoQ to 5.4x
  • Capital Risk Adequacy Ratio, based on IndAS, stood at 23.4% as on 31st March 2022, of which Tier-I capital was 20.7%.
  • ICRA revised the outlook of credit rating for Non-Convertible Debentures to Stable from Negative on 12th April 2022
Market Times

Performance (Q4 FY21-22 vs Q4 FY20-21)
Net Interest Income stood at INR 377 crore compared to INR 593 crore registering a decline of 37%. During Q4 FY21-22, there is a net income reversal of INR 58 crore on derecognized loans due to bunwinding impact of Spread contraction and run offs whereas during Q4 FY20-21, there was a net positive impact of INR 58 crore on derecognized loans due to fall in assignees’ MCLR in Q4FY21-22, there is an IndAS adjustment resulting in net interest income reversal of INR 70 crore.
 Operating expenditure decreased by 13% to INR 126 crore vs INR 144 crore.
 Pre provision Operating Profit declined by 31% to INR 369 crore vs INR 539 crore.
Net Interest Margin stood at 2.3% as compared to 3.3%.
 Gross Margin, net of acquisition cost, stood at 3.0% compared to 3.7%.

Yearly Performance (FY21-22 vs FY20-21)

  • Net Interest Income stood at INR 1,869 crore compared to INR 2,322 crore registering a decline of 20%. During FY21-22, there is a net income reversal of INR 217 crore on derecognized loans due to unwinding impact of Spread contraction and run off whereas during FY20-21, there was a net positive impact of INR 178 crore on derecognized loans due to fall in assignees’ MCLR
  • The Spread on loans for FY21-22 stood at 2.1% compared to 2.8% for FY20-21. Excluding the net impact on securitization transactions, the Spread for FY21-22 is 2.5%.
  • Net Interest Margin stood at 2.8% compared to 3.2% YoY. Excluding the net impact on securitization transactions and lower gearing, the Net Interest Margin for FY21-22 is 3.1%.
  • Gross Margin, net of acquisition cost, is at 3.2% as compare to 3.3%.
  • Return on Asset (RoA) is at 1.2% during FY21-22, similar to FY20-21.
  • Gearing as on 31st March 2022 is 5.4x compared to 6.7x as on 31st March 2021 with higher share of retail loan assets.
  • Return on Equity (RoE) of 8.9% for FY21-22 vis a vis 10.9% for FY20-21
  • Loan Assets as on 31st March 2022, registered growth despite sell down/accelerated prepayment of INR 370 crore in corporate book. The Loan Asset stood at INR 56,889 crore as on 31st March 2022 as compared to INR 56,798 crore as on 31st December 2021. Retail loans are at INR 49,730 crore as on 31st March 2022 compared to INR 49,036 crore as on 31st December 2021.

(IV) Asset Quality :

  • Gross Non-Performing Assets (GNPA) at an AUM level is at 6.99% while it is 7.61% at Loan Assets (as per IndAS gross stage 3 is 8.12%) as on 31st March 2022.
  • Retail GNPA reduced by 140 bps QoQ to 3.56% as on 31st March 2022
  • Net NPA stood at 4.49% of the Loan Assets (as per IndAS net stage 3 is 5.06%) as on 31st March 2022 as compared to 4.87% as on 31st December 2021.

Capital to Risk Asset Ratio (CRAR) :

  • The Company’s CRAR based on IndAS stood at 23.4% as on 31st March 2022, of which Tier-I capital was 20.7%.
  • The risk-weighted assets as on 31st March 2022 stood at INR 40,604 crore.

Shares of PNB Housing Finance Ltd was last traded in BSE at ₹390.90 as compared to the previous close of ₹388.50. The total number of shares traded during the day was 20451 in over 868 trades.

The stock last hit in BSE,

  • Intraday High of ₹ 399.00
  • Intraday low of ₹ 384.00