PNB Housing Finance jumps 11% on strong Q2 performance; broader market shows mixed trends
Key drivers included better asset quality, with gross NPAs reduced to 1.24 per cent from 1.35 per cent last quarter and 1.78 per cent in the same period last year.
PNB Housing Finance's shares surged by 10.9 per cent to Rs 1,035 on the BSE in Friday's intraday trade, buoyed by robust Q2 earnings. The company reported a net profit of Rs 470 crore for Q2FY25, marking a 23 per cent increase year-on-year and a nine per cent rise sequentially.
Key drivers included better asset quality, with gross NPAs reduced to 1.24 per cent from 1.35 per cent last quarter and 1.78 per cent in the same period last year. Net NPA also showed improvement, decreasing to 0.84 per cent from 0.92 per cent sequentially and 1.19 per cent year-on-year.
Operational Highlights and Growth
PNB Housing Finance’s AUM rose by 11 per cent year-on-year and three per cent quarter-on-quarter, reaching Rs 74,724 crore. Retail disbursements surged by 28 per cent to Rs 5,341 crore, with affordable and emerging markets making up 31 per cent of the total. As of September 30, retail loan assets stood at Rs 67,970 crore, comprising 23 per cent from affordable and emerging markets. Meanwhile, corporate loans declined by 36 per cent to Rs 1,531 crore, reflecting a shift towards retail-focused growth.
Punjab National Bank (PNB) reported robust earnings for Q1 FY25, with net profit surging by 206.9 per cent year-on-year to Rs 37,162 million, compared to Rs 12,108 million in the same period last year. Net sales rose by 13.5 per cent to Rs 291,445 million, up from Rs 256,729 million in the April-June 2023 quarter. For the fiscal year ending March 2024, PNB’s annual profit saw a significant 172 per cent increase to Rs 91,072 million, driven by a 25.6 per cent rise in total revenue to Rs 1,090,646 million. Currently, the bank’s price-to-earnings ratio stands at 10.2, based on its rolling 12-month earnings.
As of 12:15 PM, PNB Housing Finance’s stock traded up by 3.73 per cent at Rs 969.30 on the BSE, paring earlier gains.
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