Money & Banking

Demonetisation to have positive impact in long-term, says PNB Housing Finance chief

K.R.Srivats New Delhi | Updated on January 15, 2018 Published on November 20, 2016

PNB Housing Finance Limited (PNBHFL) is quite hopeful of maintaining the first half financial performance in the second half as well,its Managing Director Sanjaya Gupta has said.

The current demonetisation announcement of Rs 500 and Rs 1,000 notes is expected to have a beneficial impact on PNBHFL's business and not affect it, Gupta told BusinessLine after the Board considered the company's results for the first half this fiscal.

Financial performance

For the six months ended September 30,2016, PNBHFL reported a net profit of Rs 233.6 crore, up 75 per cent over net profit of Rs 133.6 crore recorded in same period last fiscal. Net interest income recorded 45 per cent increase to Rs 437.6 crore (Rs 301.5 crore). "We are pretty hopeful to maintain the first half bottomline in second half as well. Third quarter--which is important quarter for housing finance industry--will be little dampened as there may be deferment of decision making. But the fourth quarter will be far-far better for us", Gupta said.

Long term positive

Gupta highlighted that demonetisation is a "big positive step" that has happened in Indian economy and would bring lot of transparency in housing finance/real estate industry.

"In the long run, demonetisation is a big positive step. I have been in this industry for 30 years. This is the first time any government has taken such a bold step and holding on to it. They are not relenting on it", he said.

"A combination of GST, Real Estate Regulatory Authority (RERA) and demonetisation --taking out of cash from parallel economy-- is going to help us lot. It is going to bring method into this entire madness".

Published on November 20, 2016
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