The Board of Directors of PNB Housing Finance Limited has approved the Consolidated Audited Financial Results for the quarter and the financial year ending March 31, 2019. In compliance with the Ministry of Corporate Affairs and National Housing Bank directives, the Company has adopted Indian Accounting Standards (IndAS) effective April 1, 2018, and the corresponding financial results are based on IndAS.
Quarterly Comparison (Q4 FY18-19 vs. Q4 FY17-18):
- Net Interest Income increased by 13% to INR 609.7 crore from INR 540.8 crore.
- Profit After Tax (PAT) rose by 51% to INR 379.7 crore, up from INR 251.6 crore.
- The Spread on loans was 2.59% compared to 2.98% in Q4 FY17-18.
- Net Interest Margin stood at 3.18%, down from 3.59%.
- Gross Margin, net of acquisition costs but including fees, was 3.51%, compared to 3.78%.
Annual Comparison (FY18-19 vs. FY17-18):
- Net Interest Income grew by 24% to INR 2,063.5 crore from INR 1,659.9 crore.
- PAT increased by 42% to INR 1,191.5 crore, up from INR 841.2 crore.
- The Spread on loans was 2.35% compared to 2.54%.
- Net Interest Margin decreased to 2.93% from 3.19%.
- Gross Margin, net of acquisition costs but including fees, was 3.34%, down from 3.50%.
- The net worth as of March 31, 2019, was INR 7,543.9 crore.
- Cumulative Expected Credit Loss (ECL) provision was INR 437.6 crore, with an additional INR 156.5 crore set aside for unforeseen macroeconomic factors.
- Return on Assets was 1.61% with an average gearing of 9.3x, compared to 1.56% with an average gearing of 7.6x during FY17-18. Return on Equity expanded to 17.44% from 14.20%.
Dividend:
The Board of Directors has recommended a final dividend of INR 9.00 per equity share of INR 10 for FY18-19. The dividend payout ratio, including dividend distribution tax, is 16.8%.
Business Operations:
- Disbursements grew by 9% to INR 36,079.4 crore from INR 33,194.7 crore.
- Assets Under Management (AUM) increased by 36% to INR 84,721.9 crore from INR 62,252.0 crore, with housing loans comprising 71% and non-housing loans 29% of the AUM.
- Loan Assets grew by 30% year-on-year to INR 74,023.0 crore from INR 57,014 crore.
Borrowings:
- Total borrowings rose by 33% to INR 72,362.0 crore from INR 54,268.3 crore.
- The Deposit portfolio grew by 24% to INR 14,315.0 crore from INR 11,586.2 crore, with increased retail penetration.
- Outstanding loans assigned amounted to INR 10,698.9 crore.
Distribution and Service Network:
- As of March 31, 2019, the Company operated 102 branches in 62 cities and 23 hubs, including 18 new branches opened during the year. Additionally, 29 outreach locations are available for customer service.
Asset Quality:
- Gross Non-Performing Assets (NPA) were 0.48% of Loan Assets, up from 0.33% as of March 31, 2018. At the AUM level, Gross NPA was 0.44%.
- Net NPA stood at 0.38% of Loan Assets, compared to 0.23% the previous year.
- The Capital to Risk Asset Ratio (CRAR) based on IGAAP was 13.98% as of March 31, 2019, with Tier I capital at 11% and Tier II capital at 2.98%. The regulatory minimum requirements for CRAR and Tier I capital are 12% and 6%, respectively.
- The Company’s Fixed Deposit program is rated “FAAA” by CRISIL and “AAA” by CARE, indicating high safety for repayment of interest and principal. The Commercial Paper (CP) is rated “A1(+)” by CARE & CRISIL, and Non-Convertible Debentures (NCD) are rated “AAA” by CARE, “AA+” by India Ratings, CRISIL, and ICRA. The long-term bank loans rating is “AAA” by CARE and “AA+” by CRISIL.
Mr. Sanjaya Gupta, Managing Director, remarked, “FY18-19 was a challenging year with tight liquidity impacting the Indian financial and real estate sectors. Despite these challenges, we focused on maintaining adequate liquidity, balanced Asset Liability Management (ALM), efficient operations, and robust asset quality. This resulted in double-digit growth across all business areas and financial metrics. Our PAT for FY18-19 surpassed INR 1,100 crore. Moving forward, we will continue to balance business growth with a focus on asset quality and profitability.”
