PNB Housing Finance is expected to witness a block deal worth Rs 500 crore in the coming days. The identity of the sellers involved in this stake sale has not been revealed yet. This block deal will involve the sale of 69.6 lakh shares of the company.
According to sources cited by CNBC Awaaz, the floor price for this deal has been set at Rs 717 per share, which is almost 9% lower than the current market price. On Tuesday, PNB Housing shares closed at Rs 788 on the NSE, down by Rs 10.85 or 1.36% from Friday’s closing price.
Earlier this year, a Singapore-based investor, Investment Opportunities V, sold its entire 9.88% stake in the company for Rs 2,106 crore through an open market transaction.
In the March quarter, PNB Housing Finance reported a net profit of Rs 439 crore, which is a 57% increase year-on-year due to lower credit costs and a modest 10% growth in its lending business. The net profit was Rs 279 crore in the same period last year. The company’s net interest margin was slightly lower at 3.65% compared to 3.74% a year ago. However, its net interest income grew by 7% year-on-year to Rs 632 crore. Operating profit for the quarter was Rs 566 crore, up from Rs 487 crore.
The company’s loan assets grew by 10% year-on-year to Rs 65,358 crore by the end of March, with retail loans growing by 14% to Rs 63,306 crore. However, PNB Housing’s corporate loan book decreased by 46% in FY24 to Rs 2,052 crore as part of an effort to reduce risk in its portfolio.
Managing Director Girish Kousgi noted significant improvement in asset quality, with a 57% reduction in non-performing assets year-on-year. The gross non-performing assets ratio was 1.5% at the end of March, down from 3.83% a year earlier.
Kousgi expressed optimism about future growth and profitability, highlighting the company’s planned expansion into the high-yielding affordable housing segment and retail loan business. The average ticket size for individual housing loans was Rs 29 lakh.
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