Why is PNB Housing Finance raising additional capital in the market?
Answer
Answer
PNB Housing Finance board has approved raising equity capital to the tune of Rs.1800 crore through preferential and / or rights issue. PNB Housing is a listed subsidiary of Punjab National Bank. Its total plan is to raise close to Rs. 45,000 crore via debt during the year.
The parent, PNB, will also infuse Rs.600 crore in the housing finance arm through preferential issue. PNB Housing had done reasonable well in the Jun-20 quarter reporting 9.6% lower net profit at Rs.257.18 crore, surely not bad in a tough quarter.