Shares of PNB Housing Finance surged 10.90% to ₹1,035 on the BSE during Friday’s intraday trading, following the company’s robust earnings report for the second quarter of the financial year 2024-25 (Q2FY25).
The company posted a net profit of ₹470 crore for the quarter ending in September, reflecting a 23% year-on-year increase and a 9% rise from the previous quarter. This growth was attributed to improved asset quality, with the gross non-performing assets (NPA) ratio declining to 1.24%, down from 1.35% in the last quarter and 1.78% a year prior. The net NPA also improved to 0.84%, compared to 0.92% in the previous quarter and 1.19% a year ago.
PNB Housing Finance saw healthy growth in its assets under management (AUM), which rose 11% year-on-year and 3% quarter-on-quarter to ₹74,724 crore. Retail disbursements grew by 28% year-on-year to ₹5,341 crore, with affordable and emerging markets accounting for 31% of this figure.
As of September 30, the company’s retail loan assets totaled ₹67,970 crore, with affordable and emerging markets making up 23% of the retail loan portfolio. However, corporate loans saw a decline of 36% year-on-year to ₹1,531 crore.
A subsidiary of Punjab National Bank, PNB Housing Finance offers a variety of loans, including individual home loans, loans against property, non-resident property loans, construction finance, and lease rental discounting. The company manages its sales and distribution through its wholly-owned subsidiary, PHFL Home Loans and Services Limited.
With a total market capitalization of ₹24,961.80 crore, PNB Housing Finance’s shares trade at a price-to-earnings ratio of 15.03 and an earnings per share of ₹62.09. By 10:48 AM, the stock had pared some gains, trading up 2.79% at ₹959.25, while the BSE’s Sensex was down 0.61% to 79,575.26.
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