ICRA has downgraded the rating of the Non-Convertible Debentures and Tier II bonds of PNB Housing Finance Limited to [ICRA]AA (Negative); downgraded from [ICRA]AA+ (Negative).
As per ICRA;
"The revision in the rating factors in the weakening of PNB Housing Finance Limited's (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)."
Shares of PNB Housing Finance Ltd was last trading in BSE at Rs.161.55 as compared to the previous close of Rs. 170.05. The total number of shares traded during the day was 18215 in over 1100 trades.
The stock hit an intraday high of Rs. 172.5 and intraday low of 161.55. The net turnover during the day was Rs. 3015731.