PNB Housing Finance Ltd (PNBHFL) plans to raise capital to the tune of ₹1,700 crore and has approached its promoter Punjab National Bank (PNB) for participation in this exercise. It is still awaiting PNB’s response for the same.

Currently, PNB holds 32.65 per cent in the company and has already stated its objective of maintaining a minimum stake of 26 per cent, while continuing to be the promoter and provide brand support.

PNBHFL’s reworked business plan for 2020-21, which has now been approved by its Board, sees its assets under management (AUM) in FY 2020-21 being maintained at a trajectory similar to that in FY 2019-20 (AUM contracted 2 per cent this year). With focus on retail segment, retail loans are expected to further increase beyond 85 per cent of the total AUM as on March 31, 2021, according to the reworked business plan.

The efforts will be on maintaining neat spreads of between 210 basis points (bps) and 220 bps for FY 2020-21 with no plans of any major securitisation of retail loans during the year. Including fee and other operating income, the gross margin is expected to be in range of 300-315 bps for FY 2020-21.

Real estate sector

PNBHFL has said that following the steps taken by the government, the real estate sector is showing early signs of bottoming out after seven years of muted performance. This housing finance company is also actively looking to further sell down its corporate assets and make the balance sheet further asset-light.

Moratorium

In the first quarter of this fiscal, PNBHFL disbursed ₹800 crore of loans and maintained cash and bank balances of ₹7,000 crore as on June 30. As on June 30, retail loans under moratorium Phase 2 accounted for 29 per cent of retail AUM, and on overall basis, 39 per cent of AUM is under moratorium.

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