PNB Housing Finance shines: even during the days of market crisis

Amidst all the chaos in the market there are few companies which have delivered impressive results. PNB Housing Finance is one  such company which has impressed the street with its phenomenal results.

In its first filing of results since being listed the company has declared rise in income of 50.8 per cent to Rs 970.17 crore. Income in the previous year was Rs 643.21 crore.  The net profit rose by 78.3 per cent at Rs 137.65 crore for Q2 ended 30 September 2016. For the previous year the net profit stood at Rs 77.20 crore in the similar period.

The trigger for the stock will be the infusion of equity in the business which will help company grow the loan book. With improved branch network the company can expect to grow at a faster pace. As on September 30  the loan outstanding stood at Rs 32,236 crore. On the other hand the deposit portfolio grew by 14 per cent to rs 7,831 crore as on September 30.

Importantly the gross non-performing assets (NPAs) stood at 0.26 per cent of the loan assets as on September 30. There is slight increase in the net NPAs with bad loans at 18 per cent of net advances against 0.09 per cent in the same period a year ago.

The stock can be a good addition to the existing portfolio looking at the growth opportunities for the company owing to equity infusion.