INSUBCONTINENT EXCLUSIVE:
Rs 237 crore for the December quarter amid lower credit growth, despite easing interest rate cycle and adequate liquidity.
Following the
development, the stock fell 12.07 per cent to Rs 476.80 on BSE.
The lender's net interest margin, a key profitability ratio, shrunk to
2.98 per cent for the December quarter, the lowest in last five quarters
The outstanding loan book de-grew to Rs 69,194 crore from Rs 74,023 crore in March 2019.
Its net interest income stood at Rs 566 crore, up
1.4 per cent over Rs 558 crore in the year-ago quarter
Gross non-performing assets ratio stood at 1.75 per cent of the loan assets at the end of December 2019 against 0.47 per cent a
year-ago.
Meanwhile, Punjab National Bank has decided not to sell shares in the subsidiary and maintain a minimum shareholding of 26 per
cent as a promoter, putting all speculations to rest.
PNB's holding in PNB Housing is set to fall to 27.5 per cent from the current 32.43
per cent when the latter issues fresh shares to raise about Rs 1500 crore
PNB will not subscribe to the issue
That said, the mortgage lender has shrunk its equity raising plan by one-fourth from the proposed Rs 2,000 crore so that PNB's holding
does not fall below the 26 per cent level, PNB Housing Finance managing director Sanjay Gupta told ET.