PNB Housing Finance on Thursday reported a 10 per cent decline in consolidated net profit to Rs 257.2 crore in the first quarter ended June 30, mainly due to lower disbursement amid Covid-19 pandemic.

The company’s net interest income also slipped 22 per cent to Rs 487.8 crore during April-June, as against Rs 625.5 crore in the year-ago period, it said in a regulatory filing.

Total income during the quarter also fell to Rs 1,872.33 crore from Rs 2,232.58 crore.

However, the deposit portfolio grew by 5 per cent to Rs 16,203 crore during the quarter as against Rs 15,446 crore with expanding retail penetration, PNB Housing said.

During the quarter, the Covid-19 pandemic had a significant impact on the disbursements resulting in the lowest quarterly disbursements in more than 24 quarters. However, with all our branches now operational, we are witnessing an increasing trend in disbursement on a month on month basis. The company has rolled out its business plan for the FY 20-21 and will continue to focus on the lower risk-weighted retail assets, resulting in a higher percentage of the retail book in the total AUM,” Neeraj Vyas, Managing Director & CEO, PNB Housing Finance, said.

In conclusion, the reduction in profit margin so expected but the housing finance company backed by PNB (Punjab National Bank) is hopeful that in the next quarter, it’ll be able to get back to pre-COVID levels.