PNB Housing Finance on Thursday reported a 19 per cent decline in net profit at Rs 188 crore for the quarter ended December 2021, mainly on fall in core income as disbursements slipped.

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The non-banking finance company, promoted by state-owned Punjab National Bank (PNB), had reported a net profit of Rs 232 crore in the same period a year ago.

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Total income during October-December period of 2021-22 stood at Rs 1,495.61 crore, down by 26.8 per cent from Rs 1,896.35 crore in same quarter of 2020-21, PNB Housing Finance said in a regulatory filing.

The Net Interest Income (NII) stood at Rs 439 crore compared to Rs 590 crore, registering a decline of 26 per cent.

"During Q3 FY21-22, there is a net income reversal of Rs 79 crore on derecognized loans due to unwinding impact of spread contraction and run offs whereas during Q3 FY20-21, there was a net positive impact of Rs 31 crore on derecognized loans due to fall in buying banks' MCLR resulting in spread widening and income from fresh securitization of Rs 396 crore," it added.

The housing financier also witnessed expansion in its operating expenditure by 15 per cent to Rs 116 crore during the December quarter, against Rs 101 crore a year ago, even as it fell by 2 per cent from the preceding quarter's Rs 119 crore.

Among others, the pre-provision operating profit was down by 30 per cent at Rs 383 crore.

PNB Housing Finance said its net interest margin stood at 2.7 per cent during the quarter, down from 3.2 per cent in the same period a year ago.

Excluding the unwinding impact on derecognised loans, the net interest margin is at 3.2 per cent for Q3 FY21-22.

Gross margin, net of acquisition cost, stood at 3 per cent compared to 3.5 per cent.

"The company continues to focus on retail segment and in order to enhance Unnati business, has opened 13 new locations during the quarter. Further, 25 new Unnati locations are planned to be operationalised by March 2022.

"Under Project Ignite number of initiatives are implemented during the quarter and the outcome is expected to be visible in the coming quarters," the company's Managing Director and CEO Hardayal Prasad said.

Additionally, the company said its Chief Financial Officer Kapish Jain has resigned and is currently serving his notice period which is up to April 7, 2022.

Arrangements are being made to find his successor, it added.

On business operations, the company said its disbursements stood at Rs 2,828 crore, down by 12 per cent compared to Rs 3,203 crore in Q3 FY20-21.

Retail disbursements were 97 per cent of the total disbursements in Q3 FY21-22.

Also, the assets under management (AUM) degrew by 5 per cent from the previous quarter ended September 2021 at Rs 66,539 crore as on December 31, 2021.

"The degrowth in AUM is primarily on account of sell down/accelerated payments and no new sanctions in the corporate book. Retail book contribute 88 per cent of the AUM," it said.

The company's loan assets stood at Rs 56,798 crore by end-December 2021 as against to Rs 59,283 crore by end of September 2021.

The retail loans were at Rs 49,046 crore as on December 31, 2021, similar to loans as on September 30, 2021, PNB Housing Finance said.

Corporate loans were at Rs 7,761 crore, registering a decline of 22 per cent from the previous quarter, primarily on account of sell down/accelerated payments of Rs 1,080 crore during Q3 FY21-22, it said further.

On the asset quality front, the gross non-performing assets (NPAs) stood at 7.64 per cent of the gross advances as of December 2021, while net NPA stood at 4.87 per cent of the net advances.

The company said its total borrowings were at Rs 53,827 crore as against Rs 64,131 crore a year ago.

Stock of PNB Housing Finance closed at Rs 487.35 apiece on BSE, up by 1.06 per cent.