There was a sell down and
accelerated pre-payment of Rs 477 crore in the corporate book.
Mortgage lender PNB
Housing Finance (PNB HFC) plans to reduce corporate loan book by Rs 1,500
crore by March 2021 and is going in for a second round of rationalization.
Hardayal Prasad, managing director (MD) and chief executive officer (CEO) said
the company has built a strong balance sheet and will continue to rebalance its
portfolio to build a robust retail franchise.
There was a sell
down and accelerated pre-payment of Rs 477 crore in the corporate book.
"HFC remains
steadfast in its strategy to bring down share of corporate book by end of the
current fiscal year," Dayal said in an analyst’ call.
The company is
closely monitoring its corporate book and many accounts are in various stages
of resolution. Some of these resolutions are expected to fructify during the
current financial year.
Assets under
management (AUM) stood at Rs 81,221 crore as on September 30, 2020, compared to
Rs 83,495 crore as on June 30, and Rs 89,471 crore as on September 30, 2019. Retail
loans contribute 82 per cent and corporate loans are 18 per cent of the
AUM. Total corporate loan book was Rs 14,331 crore in September 2020.
On a sharp fall in
AUM on a sequential basis, he said the book has run-off and almost all banks
have reduced interest rates. The company’s ability to reduce rates remains
different (limited) because the HFC does not have low-cost money – CASA –
current account and savings account.
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