India’s PNB housing finance reports 65% increase in fourth quarter profit on strong demand

Finance


BENGALURU, May 18 (Reuters) – Indian mortgage lender PNB Housing Finance (PNBH.NS) said on Thursday that fourth-quarter profit jumped about 65 per cent on higher mortgage demand.

PNB Housing, a division of the state-owned Punjab National Bank (PNBK.NS), reported consolidated net profit of 2.79 billion rupees ($34 million) for the quarter ended March 31, up from 1.7 billion rupees in the same period last year. announced that it was

Net interest margin, a key indicator of profitability, stood at 3.74% and net interest income increased by 57% to Rs.5.93 billion.

Post-pandemic, India’s growing middle class has boosted housing demand thanks to increased urbanization and rising disposable incomes, despite higher loan rates.

The Reserve Bank of India has raised key interest rates by a total of 250 basis points since May 2022, and suspended the hikes in April.

The New Delhi-based company’s asset quality has improved, with the ratio of total non-performing assets to total loans declining from 4.87% as of December 30, 2022 to 3.83% as of March 31, 2022.

Disbursements for the quarter increased by 22% year-on-year to Rs 44.95 billion.

Shares of PNB Housing Finance rose 2.5 per cent to close at Rs 480.40 ahead of the results.

Parent company Punjab National Bank is due to report its fourth quarter results on Friday.

(1 dollar = 81.7800 Indian Rupee)

Reported by Kashish Tandon.Editing: Janan Venkatraman

Our standards: Thomson Reuters Trust Principles.



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