PNB Housing Finance's ₹2,500 crore rights issue expected to be complete by December: Official
The Hindu
"RBI has given approval for infusion of ₹500 crore in PNB Housing Finance. Post rights issue, the holding of the bank would come down below 30% but would be higher than 26% so that bank retains promoter status," PNB Managing Director A. K. Goel said.
State-owned Punjab National Bank on July 29 said the ₹2,500 crore-rights issue of its subsidiary PNB Housing Finance is expected to conclude earliest by December.
Following the rights issue, the shareholding of Punjab National Bank (PNB) as a promoter of the company would come down from the current level of 32.57% to below 30%.
"RBI has given approval for infusion of ₹500 crore in PNB Housing Finance. Post rights issue, the holding of the bank would come down below 30% but would be higher than 26% so that bank retains promoter status," PNB Managing Director A. K. Goel said.
PNB will not be subscribing to the rights issue proportionate to its current holding in the company as the Reserve Bank of India (RBI) has allowed the bank to invest only up to ₹500 crore in the rights issue. Consequently, the lender's stake in the mortgage firm will come down below 30% from the current level. Mr. Goel said the rights issue process is expected to conclude by December or latest in the March quarter.
The housing finance company was looking to raise equity capital worth ₹4,000 crore and had entered into a deal with joint venture partner Carlyle Group, among other investors, in May last year.
However, in October 2021, the mortgage lender decided to terminate the ₹4,000 crore stake sale citing delays due to pending legal proceedings.
About the financial performance of PNB, Mr. Goel said the bank intends to bring down the gross Non-Performing Assets (NPAs) to single digit and net NPA to 3.5% by the end of March 2023.
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