PNB Housing Finance is seeking shareholder approval to raise nearly Rs.45,000 crore through the issue of debt securities. This is approval is likely to be sought during the AGM on August 05. The issue is likely to be made via the issue of redeemable, non-convertible debentures which will be of an unsecured nature. They are likely to be privately placed.

PNB Housing intends to raise long term funds through bonds in the current year to create a safety net ahead of the lifting of the EMI moratorium as well as creating a war chest to finance their growth in the future. In FY20, the disbursement of loans fell 48% to Rs.18,626 crore. The HFC is worried as 82% of its loan book is from retail customers.

Housing credit growth is estimated to be slower in the first half of FY21, while recovery in the second half will largely be contingent on an economic turnaround. PNB Housing will sell down its corporate loan book, which is not too large. The good news is that PNB Housing has been assured the full support of its promoter, PNB, in the pandemic outcome.