PNB Housing Finance on Tuesday reported 43 per cent jump in net profit at Rs 269 crore driven by a massive growth in the core net interest income in December quarter even though loan growth was muted for the period.

The company's net interest income jumped 67 per cent to Rs 734 crore during the quarter, as it passed on the rising interest rates to its customers even though the mainstay retail loan book inched up only 6.6 per cent to Rs 53,123 crore.

Retail book constitutes as much as 92 per cent of this asset, the company said in a statement.

Total loan book increased to Rs 58,034 crore from Rs 57,845 crore in December 2021. Spread on loans stood at 3.83 per cent, up from 3.38 per cent, helping it improve its net interest margin to 4.68 per cent from 4.14 per cent.

Total income rose to Rs 1,713.64 crore in the quarter from Rs 1,411.24 crore in the year-ago period.

Impairment on financial instruments and write-offs rose to Rs 254.84 crore from Rs 129.48 crore.

Overall asset quality improved with gross bad loan ratio coming down to 4.87 per cent from 6.06 per cent and net NPA ratio remaining flat at 3.22 per cent.

Of the total dud loans, 2.86 per cent are in the retail segment, which also improved from 3.39 per cent while corporate NPAs stood at 26.61 per cent, down from 30.37 per cent.

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