PNB Housing Finance on Saturday reported net loss of Rs 242.06 crore for the fourth quarter ended March 31, mainly due to higher provisioning amid COVID pandemic. The housing finance company (HFC) had registered a net profit of Rs 379.77 crore during January-March quarter in 2018-19. “Profit after tax degrew by 163.7 per cent primarily on account of higher provisions, including COVID-19 provision of Rs 471 crore, resulting in the loss of Rs 242.1 crore from profit of Rs 379.7 crore,” it said in a regulatory filing.
Adjusted for COVID-19 provision, the profit after tax (PAT) for Q4 FY20 would have been approximately Rs 122 crore, PNB Housing Finance said. The company’s income during the March quarter of FY20 also fell to Rs 1,951.84 crore as against Rs 2,148.19 crore, mainly on account on fall in interest income.
For the full year, the net profit dipped by 45.8 per cent to Rs 646.2 crore from Rs 1,191.5 crore in 2018-19. Adjusted for COVID-19 provision, the PAT for FY20 would have been approximately Rs 1,010 crore, it added. “Considering the current economic scenario and in order to conserve capital, the board has not recommended dividend for FY 2019-20,” PNB Housing Finance said.
The board, it said, approved the issuance of secured and unsecured non-convertible debentures outstanding up to an amount of Rs 45,000 crore in tranches on a private placement during a period of one year subject to the approval of the members.
PNB Housing said its assets under management (AUM) have decreased from Rs 84,722 crore as on March 31, 2019 to Rs 83,346 crore as on March 31, 2020, registering a decline of 2 per cent. Loan assets have decreased from Rs 74,023 crore to Rs 67,571 crore, a fall of 9 per cent.
The asset quality deteriorated with the gross non-performing assets (NPA) as on March 31, 2020 stood at 2.75 per cent compared to 0.48 per cent in the year-ago period. Net NPAs of the company were at 1.75 per cent of the loan assets, as against 0.38 per cent.
The extent to which the COVID-19 pandemic will impact the company’s future results will depend on developments, which are highly uncertain, including among other thing, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether government mandated or elected by the company,” it said.
The company will continue to closely monitor any material changes to future economic conditions. “However, operating in the secured mortgage asset business we believe we hold a much stable asset class which can withstand the pandemic relatively better compared other asset classes,” it said.
The HFC said that its collections was an impacted area during the lockdown as also the loan disbursements were impacted in the last 10 days of the lockdown period of March 2020.
Presently, it is well capitalised and has maintained adequate liquidity. The firm also continue to raise funds from banks, refinancing from NHB and fixed deposits. It did not opt for moratorium from its lenders and serviced its financial obligations in a timely manner.
“With focus on strengthening the balance sheet, the company took internal measures and built sufficient provisions. The company will focus on the lower risk weight retail asset business and would bring down the share of its corporate book in the AUM. The company is also actively working towards rationalising its operating expense,” Neeraj Vyas, Managing Director and CEO said. The company is mainly engaged in the business of providing loans for purchase or construction of residential houses.