MMFS reported PAT of INR 780mn in 2Q18 (vs. JMFe of PAT Rs1.39bn) as credit costs remained elevated at 396bps (vs.313bps in 2Q17) due to migration to 90DPD this resulted in additional provisions of INR 177mn and income reversal of INR 70mn; adjusting for which PAT stood at INR 2.43bn (156% YoY). Asset quality witnessed signs of improvement as Gross NPL (on 120DPD) on an absolute basis increased by just 8% YoY and GNPL ratio (on 120DPD) improved 72bps YoY to 10.5%. GNPL ratio stood at 12.6% (on 90DPD) while coverage ratio remained stable at 51% (vs. 51.8% on 120DPD) despite migrating to 90DPD. AUM growth remained stable at 14% YoY while margins (NII/AUM) increased 15bps YoY...
PNB Housing Finance (PNBHF)'s operating performance remained strong in 2QFY18, with net profit up 51% YoY, driven by robust AUM growth of 47%. Disbursement growth came in at 45% YoY while the loan book increased 51%, driven by growth in the developer book (59% YoY/18% QoQ) and individual home loans (47% YoY/11% QoQ), while LAP book growth stood at 38% YoY/12% QoQ. Margins expanded 39bps YoY to 3.15% in 2QFY18, driven by a 94bps YoY decline in funding costs and a change in the loan mix towards developer book, LRD and Corporate Term Loan. PNBHF's asset quality remained stable with gross NPLs of 0.34%, while its coverage ratio stood at 24% (vs. 32% in 2QFY17). With aggressive lending...
