PNB Housing Finance block deal: Shares crack 8% following large transaction; check details

Morgan Stanley was appointed as the banker to manage the deal, the report further said. 

PNB Housing Finance Q2 FY25 Results

The housing finance company reported a net profit of ₹470 crore for the quarter ended September 30, marking a 23% increase year-on-year and a 9% rise sequentially. This growth was driven by improved asset quality, with the gross non-performing assets (NPA) ratio declining to 1.24%, down from 1.35% last quarter and 1.78% a year ago. 

Net non-performing assets (NPAs) improved to 0.84%, compared to 0.92% the previous quarter and 1.19% a year earlier.

As of September 30, retail loan assets stood at ₹67,970 crore, with affordable and emerging markets representing 23% of the retail loan portfolio. However, corporate loans decreased by 36% year-on-year to ₹1,531 crore as of September 30.

The company’s net interest income (NII) increased by 1.2% YoY to ₹669 crore. NII growth on a sequential basis stood at 2.7%. The lower growth in NII was due to the declining impact of the corporate book, the company said.

Net interest margin (NIM) in Q2FY25 decreased to 3.68% from 3.95% in the year-ago period. NIM in Q1FY25 stood at 3.65%.

Assets under management (AUM) of the company increased by 10.8% YoY and 3.0% QoQ to ₹74,724 crore at the end of the September quarter.

PNB Housing Finance stock performance

On a year-to-date (YTD) basis, the PNB Housing stock has risen 17% and 19% in the past 12 months.

PNB Housing Finance was incorporated under the Companies Act of 1956 and commenced its operations on November 11, 1988, as a wholly owned subsidiary of Punjab National Bank (PNB).