PNB Housing Finance's rating upgraded

The rating of the fixed deposit programme of PNB Housing Finance (PNBH) has been upgraded from FA plus to FAA minus.

The upgradation reflects improvement in asset quality following the settlement of two major overdue accounts, moderate improvement in the profitability and continued strong support from the parent, Punjab National Bank (PNB).

These factors are partially offset by increasing competition, continuing interest rate risk and overdue accounts of some of the private builders.

PNBH, a fully owned subsidiary of Punjab National Bank (PNB), is engaged in the business of providing housing finance to individuals, builders and development agencies for the purpose of construction, purchase or renovation of houses.

For the year ended March 31, 2000, the company disbursed loans amounting to Rs. 87.17 crores and reported a profit after tax of Rs. 5.63 crores.

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Section  : Business
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