Laborers prepare reinforcing steel at a construction site in Lucknow, Uttar Pradesh, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

PNB Housing Expects To Recover Rs 900-Crore Stressed Loans By September

PNB Housing Finance Ltd. said it expects to recover stressed loans worth Rs 900 crore from developers by September.

“We are pretty sure to cure these accounts by end of the third quarter of this financial year,” Managing Director Sanjaya Gupta told BloombergQuint in an interview. “Already one of these accounts is in the advanced stage of being taken over by a very large business house.”

The non-bank lender has five exposures aggregating to nearly Rs 900 in corporate loans, according to a research report by Motilal Oswal.

Also, a board-level discussion would be held in three weeks to consider raising adequate tier-I capital during the year, Gupta said.

Key Highlights

(Year-On-Year)

  • Net interest income rose 16.8 percent to Rs 465.4 crore.
  • Net profit increased 51 percent to Rs 379.8 crore.
  • Declared dividend of Rs 9 apiece.
  • Board approved raising Rs 10,000 crore via non-convertible debentures and raising up to $1 billion by external commercial borrowings.

Shares of PNB Housing Finance rose as much as 9.3 percent to Rs 766 apiece in today’s trade.

Watch the full interview here: