PNB Housing Finance sees Q4 profit surge amid strong home loan demand

PNB Housing Finance Q4: PNB Housing Finance reported a robust 57 per cent increase in fourth-quarter profit, buoyed by sustained demand for home loans and a reduction in non-performing assets. The company experienced heightened demand for premium and luxury housing, while disbursements from the retail segment, its largest segment, surged by a quarter, contributing to a 24 per cent increase in total disbursements.

Despite challenges in the affordable housing segment due to high interest rates, home financiers remained optimistic about future prospects, anticipating a potential rate cut later in the year.

As part of its strategy, PNB Housing Finance has reduced its exposure to corporate loans in recent quarters, resulting in a decline in bad debt and bolstering its financial performance. The company's gross bad loans as a percentage of total loans decreased to 1.50 per cent by the end of March, down from 1.73 per cent in the previous quarter. Moreover, provisions for bad loans and write-offs saw a significant decrease of 95 per cent to Rs 6.64 crore.

With a focus on strengthening its financial position, PNB Housing Finance approved plans to raise funds through a debt issue of up to Rs 2,500 crore. This move reflects the company's commitment to maintaining liquidity and supporting its growth objectives.

Following the announcement of its strong financial results, shares of PNB Housing Finance closed 2.3 per cent higher, signalling investor confidence in the company's performance amidst favourable market conditions.

(With Reuters inputs)