CARE has put PNB Housing Finance’s several long term instruments under ratings watch in view of the capital raising requirement, which the rating agency said, was critical for the lender to maintain comfortable capital adequacy while achieving target growth.
“This is important in view of the increasing share of corporate loan book in PNBHFL’s total loan portfolio and the consequent vulnerability arising out of weakness in real estate sector,” the agency said. It added that the impact of the stake sale announced by its promoter Punjab National Bank in PNBHFL is to be seen.
In its response, PNB Housing said the current capitalisation level was adequate. It also said it was planning to raise capital to achieve target growth and will present the proposal to the board soon .
