PNB to raise `400 cr from rights issue

NEW DELHI: PNB Housing Finance, a subsidiary of Punjab National Bank (PNB), Tuesday 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. —PTI