PNB Housing Finance net profit rises 66% in FY16

PNB Housing Finance, a subsidiary of state-run Punjab National Bank, reported a rise in net profit, income and loans sanctioned for the financial year 2015-16. While net profit rose 66 percent to Rs. 326 crore, total income grew 52 percent to Rs. 2,697 crore, the company said in a statement on Thursday.

The 28-year-old company disbursed loans worth Rs. 14,456 crore, 53 percent more as compared to the previous financial year.

Assets under management rose 59 percent to Rs. 27,555 crore as on March 31, 2016, as against Rs. 17,297 crore in the previous financial year. Gross non-performing assets (NPAs) and net NPAs stood at 0.22 percent and 0.14 percent, respectively.

PNB Housing Finance, in which Punjab National Bank holds 51 percent stake, declared a dividend of Rs. 3.4 per share. 

The company said the results were along expected lines.

"The results are encouraging and at par with our expectations. With strong fundamentals of the Indian economy and a conducive environment for the mortgage industry, the velocity for the sector seems to be gaining and this shall provide huge impetus for PNB Housing to continue its growth momentum on an upward curve," Sanjaya Gupta, managing director of PNB Housing Finance Limited, said in the statement.

Another home loan company, Dewan Housing Finance Corporation Limited, had reported a 17.4 percent increase in net profit to Rs. 729.2 crore for the financial year 2015-16. Net interest income was Rs. 1,669 crore, up 21 percent from Rs. 1,379.80 in 2014-15. 

The company sanctioned loans worth Rs. 37,608 crore while assets under management rose 22 percent to Rs. 69,524 crore at the end of fiscal 2016, according to the company's regulatory filing on May 4. 

Other prominent home loan companies in India include HDFC, LIC Housing Finance, Gruh Finance, and Repco, in addition to commercial banks, both state-run and private.