PNB Housing Finance shares rose 8% today; here’s why

Shares of PNB Housing Finance Ltd rose over 8% on Monday after the firm said it has resolved and fully recovered its large corporate non-performing account of Rs 784 crore (1.3% of loan assets as on June 30, 2023). PNB Housing Finance shares gained 8.38% to Rs 688.10 against the previous close of Rs 634.75 on BSE. The stock opened higher at Rs 660 on BSE. Market cap of the firm climbed to Rs 17,079 crore.  Total 0.78 lakh shares of the firm changed hands amounting to a turnover of Rs 5.21 crore on BSE today.
 

In terms of technicals, the relative strength index (RSI) of PNB Housing Finance stock stands at 52.1, signaling it's trading neither in overbought nor in the oversold zone. PNB Housing Finance shares have a beta of 1.2, indicating high volatility in a year. Shares of PNB Housing Finance are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The housing finance arm of lender Punjab National Bank account said the account has been resolved on August 19, 2023 through an ARC sale under Swiss Challenge method as per the Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021. As on June 30, 2023, the gross NPAs of the company stood at Rs 2,270 crore (3.76% of Loan Asset) and Loan Asset was Rs 60,395 crore.

The firm reported a 47.8% year-on-year (YoY) rise in its consolidated net profit to Rs 347.32 crore against a profit of Rs 234.96 crore in the year-ago period.

As of June 30, the company’s assets under management (AUMs) climbed 2% YoY to Rs 67,340 crore. Revenue came at Rs 1707.7 crore in Q1, rising 21% from Rs 1412 crore in the June quarter of the previous fiscal.

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