PNB to infuse Rs 600 crore in PNB Housing Finance
PNB Housing Finance is a registered housing finance company with National Housing Bank
Punjab National Bank or PNB has decided to infuse Rs 600 crore in PNB Housing Finance, an housing finance company promoted by the state-run bank.
"The Exchange is hereby informed that the Bank has decided to infuse capital of an amount upto Rs 600 crore in PNB Housing Finance (PNBHFL), an associate of the Bank, through preferential issue/rights issue etc. subject to regulatory approvals, as and when PNBHFL decides to raise capital," PNB said in a communication to exchanges.
PNB said it has raised Rs 994 crore by issuing Basel III compliant bonds on private placement basis. "The bank has issued and allotted Rs 994 crore tier II (Basel III compliant) capital bonds at a coupon of 7.25% per annum on private placement basis," PNB said in a regulatory filing.
The issue opened on July 27 and closed on July 29, PNB said. There were a total of 17 allottees under this issue, the public sector lender said.
To comply with Basel-III Capital Regulations, banks need to improve and strengthen their capital planning processes.
PNB Housing Finance is promoted by Punjab National Bank and is a registered housing finance company with National Housing Bank (NHB). PNB Housing Finance offer its retail customers “housing and non-housing loans". The company is also into construction finance loans to real estate developers for residential housing. PNB Housing Finance is a deposit-taking housing finance company.
Recently, PNB Housing Finance had launched its Ace platform for digital customer onboarding. This will facilitate easier and safer approval and disbursal of loans with minimal physical interface.
Ace lets customers log into the PNB housing portal, fill the loan application, and upload the necessary KYC documents for online verification.