Credit rating agency, CARE has assigned ‘AA+’ rating to the bond issue of PNB Housing Finance (PNBHF) for Rs 200.00 crore. The continued support from PNB and PNBHF’s ability to scale up operations along-with managing interest rate risk and maintaining asset quality are the key rating sensitivities.
The rating factors in PNBHF’s strong parentage as PNBHF being a subsidiary of Punjab National Bank (PNB), and the explicit funding, managerial and operational support received from PNB. The ratings also factor in healthy profitability margins and adequate capitalization levels. The rating is however, constrained by the small size of the company and the declining trend in asset quality.
PNBHF, a subsidiary of Punjab National Bank (PNB), was promoted with the objective of venturing into housing finance business. In December, 2009 PNB divested 26% stake in its housing arm PNB housing Finance to Destimoney Enterprises (DEPL). Currently PNB holds 74% stake in PNBHF.
Company Name | CMP |
---|---|
SBI | 832.35 |
Bank Of Baroda | 269.30 |
PNB | 126.60 |
Canara Bank | 117.65 |
Union Bank Of India | 152.55 |
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