Ex-SBI Card head Hardayal Prasad appointed MD of PNB Housing Finance

PNB Housing Finance on Thursday announced appointment of Hardayal Prasad, the former SBI Card head who left the card issuer company last month, as its new managing director and chief executive.

The housing finance company promoted by country's second largest state-owned Punjab National Bank (PNB) currently has Neeraj Vyas as its interim chief. Prasad will assume charge on August 10, PNB Housing Finance said in a statement.

"Following an extensive executive search that considered internal and external candidates, its board of directors has appointed Hardayal Prasad as Managing Director and Chief Executive Officer of PNB Housing Finance Ltd," PNB Housing Finance said.

Vyas, the current interim managing director and chief executive officer of the company, will step down from the position on August 10, it added.

Prasad -- a seasoned professional with over three decades of experience in banking, international operations at SBI and later with SBI Card -- had last month resigned as the managing director and chief executive of SBI Card pursuant to voluntary retirement from SBI, the promoter of the company.

"The company has a strong parentage and trusted brand, which resonates with its stakeholders. The company with its pan-India presence, robust operating platforms and excellent customer service is well-positioned to take on the emerging challenges in the mortgage industry," Prasad said while thanking the board of PNB Housing Finance.

He holds master's degree in chemistry and is a certified associate of Indian Institute of Bankers.

He is also credited with spearheading the IPO of SBI Cards and Payment Services Ltd (SBI Card) and also led to the transformational journey of the company by repositioning it as a pure play credit card company, with leadership position in the market.

"On behalf of the board, I would like to thank Neeraj Vyas for taking charge as interim MD and CEO of PNB Housing Finance over the last three months and successfully steering the company through these unprecedented times, said S S Mallikarjuna Rao, Chairman of the Board, PNB Housing Finance.

Rao, who is also the MD & CEO of Punjab National Bank, said Prasad's illustrious track record combined with exceptional leadership qualities and values make him the right choice to lead PNB Housing Finance in its journey to becoming the leading housing finance company in India.

Prasad takes over the reins of PNB Housing at a challenging time as the company registered 48 per cent fall in its disbursements to Rs 18,626 crore in 2019-20.

While acknowledging in its annual report that 2019-20 was a challenging year for the sector as well as the sector, PNB Housing Finance said the company was focused on strengthening its balance sheet.

Going ahead, PNB Housing expects higher demand from mass housing segment and thus would focus on its retail loan portfolio and sell down its corporate loan portfolio.

Company's capital adequacy ratio had fallen to 13.98 per cent in March 2019, which had prompted the decision to reduce corporate finance book.

"We were very close to breaching the regulatory capital requirement at that point of time (March 2019). So from that time, we have taken a call that till we will raise our capital adequacy and until we are not comfortable in our corporate finance business, we will not do corporate finance," Vyas had told PTI last month.

Punjab National Bank, the promoter of PNB Housing Finance has reiterated its ongoing support and commitment to ensure the long-term growth of the company, the statement said.

"The bank has decided to infuse capital of up to Rs 600 crore in PNB Housing Finance Ltd, subject to regulatory approvals. Looking ahead, the company is in a strong position to deliver on its strategy and is well placed to capture future opportunities, it added.

Outgoing Vyas expressed confidence that Prasad's diverse and comprehensive experience as a career banker will provide strong confidence to all stakeholders including employees, customers and investors of PNB Housing.

PNB Housing Finance stock closed at Rs 213.50 apiece on the BSE, up 1.84 per cent from the previous close.