PNB Housing Finance leaps 11% as board to consider fund raising tomorrow

PNB had announced that it will infuse up to Rs 600 crore in PNB Housing Finance through preferential issue/rights issue

Shares of PNB Housing Finance zoomed as much as 11.7 per cent to Rs 268.85 on the BSE on Tuesday as the company's board is set to meet tomorrow to consider fund raising.

At 10:15 AM, the stock was trading 10.45 per cent higher at Rs 265.80 as compared to 0.57 per cent gain in the S&P BSE Sensex. Around 18.52 lakh shares have changed hands on the NSE and BSE, combined, so far. The stock hit its 52-week low level of Rs 146 on March 26, 2020. Since then, it has risen 84.14 per cent as compared to Sensex's 28 per cent gain in the same period. 

The housing financier, promoted by Punjab National Bank, had, on August 14, 2020, announced that its board will meet on August 19 (Wednesday) to consider fund raising.

" A meeting of the Board of Directors of PNB Housing Finance Limited (the “Company”) is scheduled to be held on Wednesday, August 19, 2020 to consider fund raising by the Company, and the mode thereof, by issue of Equity Shares and/or other securities through any permissible modes, as may be considered appropriate, subject to such approvals as may be required," the company had said to exchanges in a filing.

Meanwhile, Punjab National Bank had, on July 31, announced that it will infuse up to Rs 600 crore in PNB Housing Finance through preferential issue/rights issue etc. subject to regulatory approval as and when PNB Housing Finance decides to raise capital. READ THE FILING HERE

For the June quarter of 2020-21 (FY21), PNB Housing Finance reported a consolidated net profit of Rs 257.18 crore, down 9.6 per cent year-on-year (YoY), mainly due to lower disbursement amid Covid-19 pandemic. 

The company's net interest income also slipped 22 per cent YoY to Rs 487.8 crore during the quarter, as against Rs 625.5 crore in the year-ago period, it said in a regulatory filing. Total revenue from operations declined 16.1 per cent YoY to Rs 1,872.33 crore.

Total borrowings stood at Rs 67,283 crore as on June 30, 2020 compared to Rs 72,261 crore a year ago, registering a decline of 7 per cent during the period. 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.

Its total assigned loans outstanding as on June 30, 2020 stood at Rs 15,486 crore.

PNB Housing's loan assets shrank by 10 per cent to Rs 68,009 crore at end of June 2020 from Rs 75,933 crore in June 2019. The disbursements were hit hard by lockdown and economic slowdown during quarter. HFC disbursed loans worth Rs 694 crore during Q1 FY20-21 compared to Rs 7,634 crore during Q1 FY19-20.

The disbursements, however, registered an increase on a month on month basis. Retail disbursements were at Rs 674 crore and Corporate disbursements at Rs 20 crore during Q1 FY20-21.

The Assets under Management (AUM) stood at Rs 83,495 crore in June 2020 as compared to Rs 88,333 crore in June 2019. The Capital Adequacy Ratio (CAR) stood at 18.05 per cent as on at end of June 2020 (15.13 per cent in Q1FY20).

As on 30 June 2020, the company had 103 branches with presence in 64 cities and 23 hubs. The company also services the customers through 27 outreach locations.