PNB Housing Finance to raise Rs 400 cr from rights issue

Tags: Companies
PNB Housing Finance, a subsidiary of Punjab National Bank (PNB), today said it will raise Rs 400 crore by end of this month from rights issue to fund its business growth.

"The company would raise Rs 400 crore from by March 31 from rights issue," K R Kamath PNB CMD and Chairman of PNB Housing Finance said here.

PNB holds 51 per cent stake in the company while remaining 49 per cent stake is with private equity firm Destimoney.

As per its shareholding, PNB would subscribe shares to the tune of Rs 204 crore while remaining would come from the private equity firm.

With infusion of fresh capital and robust systems and processes, the company has built capabilities to double or triple its business in the next few years, he said.

The company which has 25 years of its operation also proposes to raise Rs 300 crore next fiscal through rights issue.

The housing finance company, whose loan book has crossed Rs 10,000 crore, expects profit of over Rs 120 crore in 2013-14.

Last fiscal, the company had booked the profit of Rs 92 crore.

Despite high growth rate over the years, the company has continued to maintain one of the lowest NPAs in the industry. It expects gross NPAs at 0.50 per cent and net NPAs at 0.35 per cent for March 2014.

EDITORIAL OF THE DAY

  • Mental illness needs to be treated not dismissed as madness

    We’re all mad here.” So said the Cheshire cat to Alice (Alice in Wonderland, Lewis Carol). It’s a matter of perspective who we call mad.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Amita Sharma

Sanskrit: a victim of academic schizophrenia

J Robert Oppenheimer, the father of the atomic bomb and ...

Zehra Naqvi

God save the child

Childhood is supposed to be the best phase in life. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture