Earnings Outlook
PNB Housing PAT seen up 13% YoY on provision write-back
This story was originally published at 21:25 IST on 24 April 2025
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By Shubham Rana
NEW DELHI - PNB Housing Finance Ltd. is expected to report a 13% year-on-year rise in its net profit for the quarter ended March mainly because of provision write-backs and a healthy increase in net interest income, analysts said.
The company's net profit for Jan-Mar is seen rising 13.0% on year and 6.4% on quarter to INR 5.01 billion, according to the average of estimates of five brokerages. The company had reported a 36.0% jump in its net profit to INR 4.71 billion for Oct-Dec due to reversal of prior impairments on financial instruments and write-offs.
Nirmal Bang Institutional Equities had the lowest estimates for PNB Housing's Jan-Mar profit at INR 4.82 billion, while two brokerages saw the profit at INR 5.10 billion. The company will announce its Jan-Mar and 2024-25 (Apr-Mar) earnings on Monday. On Thursday, shares of the company ended 1% higher at INR 1,008.85 on the National Stock Exchange.
"Asset quality improvement and recoveries from the written-off pool in both Retail/Corporate may result in provision write-backs (like in prior quarters)," Motilal Oswal Financial Services said in a pre-earnings report. PNB Housing's credit cost is expected to stay negative in Jan-Mar hence adding for the profitability, Mirae Asset Sharekhan said in a report.
The net interest income--the difference between interest earned and expended--is seen rising 16.3% on year and 6.3% on quarter to INR 7.14 billion, according to the average of estimates of five brokerages. Motilal Oswal expects the net interest margin to contract 5 basis points from the previous quarter, while Mirae Asset Sharekhan sees it falling by 10-12 bps. The net interest margin rose 3.70% in Oct-Dec from 3.68% in Jul-Sept.
Motilal Oswal expects PNB Housing's total loan book to grow around 15% on year, with retail loans are seen rising around 18% as at March end. Assets under management are expected to grow 15.4% in Jan-Mar, Mirae Asset Sharekhan said. AUM at the end of December was INR 768.40 billion, up 12.1%.
Following are the Jan-Mar earnings estimates for PNB Housing Finance based on reports from five brokerage firms in descending order by the estimate of net profit:
| Brokerage Firm | Net interest income (in INR million) | Net Profit (in INR million) |
| ICICI Securities | 7,210.00 | 5,097.00 |
| JM Financial Institutional Securities | 7,292.00 | 5,077.00 |
| Mirae Asset Sharekhan | 7,000.00 | 5,050.00 |
| Motilal Oswal Financial Services | 7,009.00 | 5,033.00 |
| Nirmal Bang Institutional Equities | 7,171.00 | 4,816.00 |
| Average | 7,136.40 | 5,014.60 |
End
Edited by Ashish Shirke
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