PNB Housing Finance Ltd reports 59% jump in net profit for FY06

New Delhi, May 17 (UNI) PNB Housing Finance Ltd, a wholly-owned subsidiary of the Punjab National Bank today said it has reported a 59 per cent increase in its net profit at Rs 17.82 crore for the year ended March 31, 2006, as against Rs 11.22 crore for the same period last year.

The company has achieved a 18.27 per cent growth in its total income at Rs 102.41 crore for the last fiscal as against Rs 86.59 crore in 2004-05.

Announcing the results, Managing Director V K Khanna said, ''During the year, the company achieved a 32 per cent growth in new businesses, while the total disbursements increased to Rs 393 crore from Rs 298 crore last year.'' Mr Khanna added, ''We have worked out a new strategy for improving our bottom line and volume growth by increasing focus on high ticket advances both in the housing and non-housing sector. We are also looking at sharp reduction in Non Performing Assets.'' The company's NPAs to loans outstanding during the year declined from 6.63 per cent to 2.77 per cent.

On future plans, Mr Khanna informed that the ''NHB has amended the guidelines for risk weight, which will entail that the company has to shore off Tier II or Tier I capital. As a short-term measure, the company has decided to float a Tier II issue of bonds of Rs 100 crore shortly.

Four new branches will be opened in this fiscal, he said.

At present the CAR of the company is above the minimum required 12 per cent.

UNI RA PV KN1744