Amid bear grip around NBFCs, liquidity concerns recede for PNB Housing

But competitive pressures to cap upsides on profitability, loan growth

While the non-banking financial companies are in a bear grip, the stock of PNB Housing Finance bucked the trend, gaining 5.8 per cent in Monday’s trading session. Raising external commercial borrowings (ECBs) of $200 million, or Rs 14.7 billion, and liquidity position updates given by the company supported the sentiment for the stock. The next trigger for the stock will be the ability to maintain profitability while ensuring loan growth.

While the company plans to raise Rs 20 billion non-convertible debentures (NCDs), it is gradually reducing its dependence on debt market borrowings (commercial papers and NCDs) from 50.5 per cent