The board of Punjab National Bank Housing Finance will meet on May 31 for considering the fund raising. This plan was clearly mentioned that it was functioned by the Punjab National Bank. This was a fund raising by the Bank lenders which was in pending stage from the long period and it had announced to raise Rs. 1800 crores from the rights issue in November 2020.
At present, Punjab National Bank is holding a stake of 33% in the Housing Finance Company. However, Punjab national Bank has not received any approval from the Reserve Bank of India for infusing capital into Punjab national Bank housing.
Haradayal Prasad, who is the MD and CEO of PNB Housing Finance said that , “ As you are aware that we were waiting for the capital raise with the participation of PNB and Rs,. 600 crores.
The Fresh agreement includes a royalty clause as well. As the PNBs shareholding falling below 30% PNB Housing will pay a royalty between Rs. 15 crore and Rs.30 Q The royalty would be 0.2% of its revenue Or 2% of the net profit. The CRAR ratio was at 18.73% at the end of March 2021, falling from 20.26% which implemented a quarter ago.