PNB Housing vaults on reports HDFC and Kotak Bank eye controlling stake

Last Updated: Mon, Jun 25, 2018 14:51 hrs
Real Estate (PTI photo)

Just a session after plunging to a 52-week low of Rs 1051, PNB Housing Finance Limited shares have bounced back strongly, recording handsome gains in the process.

Shares of PNB Housing Finance rose to Rs 1224 on both BSE and NSE earlier in the session today. Currently, the stock is hovering around Rs 1200, up 12% from its previous close.

On BSE, the PNB Housing Finance counter has clocked a volume of about 2.17 lakh shares so far in the session today, almost 12 times the average daily volume of 0.18 lakh shares.

On the National Stock Exchange, the PNB Housing Finance counter has clocked a volume of 2.78 million shares so far in today's session.

According to media reports, housing finance major HDFC Limited and Kotak Mahindra Bank were eyeing controlling stake in PNB Housing Finance Limited to get better acces to mortgage market. It is reported that Punjab National Bank and Carlyle were looking to sell their 66% stake in PNB Housing to a high networth investor. If the sale materialises, both PNB and Carlyle will get about Rs 6000 crore each.

Meanwhile, HDFC Limited Chief Executive Officer has reportedly clarified that the company is not looking to acquire controlling stake in PNB Housing.

The stock exchanges have sought clarification from PNB Housing Finance with regard to the news item about Kotak Bank and HDFC looking for controlling stake in the company and a reply is awaited.

In the March 2018 quarter, PNB Housing Finance Limited posted a net profit of Rs 220 crore, a 36% jump over its net profit in the year-ago quarter. On an annual basis, the company's net profit increased 58% to Rs 830 crore in financial year 2017-18, from Rs 523 crore in 2016-17.

Loan disbursements were up 61% at Rs 33,200 crore in 2017-18, from Rs 20,604 crore in 2016-17. Housing loans account for 69% of the total loans disbursed, while 31% of the loans given were towards non-housing loans.

As on March 31, 2018, PNB Housing Finance’s assets under management stood at Rs 62,205 crore, compared to Rs 41,500 crore in 2016-17.

More from Sify: