PNB Housing Finance raises Rs 1,775 crore through commercial papers

Delhi/NCR

PNB Housing Finance on October 22 said it has raised Rs 1,775 crore by issuing commercial papers (CPs) to mutual funds and banks during this month. “In spite of the current tight market scenario, our company has successfully raised funds through CPs aggregating to Rs 1,775 crore at competitive rates,” Managing Director Sanjaya Gupta said in a statement.

These borrowings in the present environment exhibit the trust and faith of the lender community in PNB Housing Finance, he added.

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The company is comfortable with its liquidity and asset and liability management(ALM) and the money raised in this month is in addition to the fund raised through external commercial borrowings (ECBs), Chief Financial Officer Kapish Jain said.

“This fund raise shall not increase our overall exposure to CPs and we would continue to maintain our overall borrowing through CPs at around 12-13 percent compared to 19 percent as of March 31, 2018,” Jain said.

He also said the company did not raise any funds from capital markets in the previous month in view of surplus liquidity.

As on date, the company has cash and liquid investments of nearly Rs 6,000 crore, PNB Housing Finance said.

Punjab National Bank (PNB) holds 32.79 percent stake in PNB Housing Finance, another 32.36 percent holding is with Carlyle Group through its investment arm Quality Investment Holdings.

Stock of PNB Housing was trading flat at Rs 706.50

Front-loading of commissions will now be allowed only in case of systematic investment plans (SIP). Here, fund houses can pay 1% yearly in advance for a maximum period of three years. Since this process would require integration at the registrar and transfer agent-end (RTA)in the interim, upfronting of trail commission for total SIP inflows of Rs 5,000 per month, per investor, across all schemes of a mutual fund shall be allowed.

In case an investor does not stay the full course of the  ..

 

Source: Economic Times, Delhi/NCR

 

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