PNB Housing Finance spurts ~8% on recovery of NPA worth Rs 784 crore

21 Aug 2023 , 12:05 PM

PNB Housing Finance shares rose 8% to Rs 688 in BSE trade on Monday after the company resolved and fully recovered a corporate non-performing asset (NPA) of Rs 784 crore.

According to the company, it has fully recovered this corporate NPA, which accounted for approximately 1.3% of the loan asset as of June 30, 2023. The company settled this account on August 19, 2023, by selling the loan to an asset reconstruction firm using the Swiss Challenge technique as defined by the RBI.

At around 11.56 AM, PNB Housing Finance was trading 5.17% higher at Rs 668.20, against the previous close of Rs 635.35 on NSE.

PNB Housing’s gross NPA was Rs 2,270 crore as of June 30, 2023, representing 3.8% of loan assets. The loan assets of the company aggregate to Rs 60,395 crore.

PNB Housing Finance’s consolidated net profit after tax increased 47.8% year-on-year (YoY) to Rs 347.32 crore in Q1FY24. In the previous fiscal year, the company had a profit of Rs 234.96 crore. Net interest margin, a crucial metric of profitability, was 3.86% during the quarter, while net interest income increased by 70% to Rs 629 crore.

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