Receive News Updates by E-Mail
Connect with us

Commercial News

Deutsche Bank AG releases all its shares having voting capital of 32.38% in PNB Housing Finance

Published

on

Deutsche Bank AG had acquired all these shares between May 9, 2018

Deutsche Bank AG has released all its 54,192,300 shares having voting capital of 32.38% in PNB Housing Finance, the latter informed in a BSE filing. Deutsche Bank AG’s Hong Kong Branch acted as a ‘Security Agent’ for the transaction.

Deutsche Bank AG had acquired all these shares between May 9, 2018 and 31 Mar 2020 by way of release of pledge over equity shares of PNB Housing.

In a separate release, PNB Housing said it has donated Rs 1.76 crore partly to fund critical scientific research on combating Covid-19, being undertaken by the National Centre for Bio-Sciences, and to feed affected migrant workers, labourers and the homeless in Delhi.

The company also informed that Tajendra Mohan Bhasin has been appointed as an Independent Director of the company w.e.f. April 02, 2020. He was appointed as the Vigilance Commissioner in Central Vigilance Commission by the President of India. Presently, he is the Chairman of Advisory Board for Banking & Financial Frauds constituted by the Central Vigilance Commission, in consultation with RBI. He was formerly associated with Oriental Bank of Commerce as the General Manager. 

On Saturday ICRA also downgraded the rating of the Non-Convertible Debentures (NCDs) and Tier II bonds of the company to AA (Negative) from AA+ (Negative).

ICRA said “The revision in the rating factors in the weakening of PNB Housing Finance (PNBHFL) asset quality, especially in the wholesale loan portfolio, and the delays in its capital-raising programme along with the lower-than-expected planned equity infusion.

PNBHFL recently took the board’s approval to raise up to Rs. 1,700 crore of equity, which is lower than the previously envisaged amount. Moreover, given the current market conditions, the complete equity raise may be challenging in the near term and any delays in the same will further delay the expected improvement in the leverage profile and limit the cushion available for absorbing contingencies.

The risks are mitigated by the good collateral cover maintained by the company for such exposures, its risk management systems and processes, which support its ability to proactively manage the portfolio as demonstrated in the past, and the reduction in the leverage level (gearing declined to 8.48 times as on December 2019 from 9.75 times as on March 31, 2019).” 

While PNBHFL is making efforts to recover from delinquent accounts, the continued slowdown in the real estate market could impact the recoveries from the stressed portfolio. Further, considering the concentrated risk in this profile and the challenging operating environment, the company’s economic capital requirements have increased, said ICRA.

Although the overall asset quality deteriorated, it was comfortable with gross and net NPAs of 1.75% and 1.44%, respectively, as on December 31, 2019). Given the typical maturity profile of the loans in the real estate sector and the significant prepayments/exits through refinance, the share of the loan book under moratorium remains high.

ALSO READ: CARE reaffirms ‘A’ rating for Ashiana Housing : BSE filing

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

© 2020 RealtyNXT | All Rights Reserved.