While the current capitalisation level is adequate with sufficient cushion over minimum CRAR required according to regulations, the company is planning to raise capital to achieve target growth.
The mortgage lender, in its board meeting, has approved the issuance of secured and un-secured non-convertible debentures (NCDs) totalling Rs 10,000 crore. Moreover, approval was also granted to raise funds by external commercial borrowing route upto $ 1 billion.
The company said, it borrowed incrementally Rs 30,858 crores in FY19 with over 55 per cent mobilised post the IL&FS crisis. However, it has maintained Rs 7,000 crore cash and liquid investments as of March, 2019.
The net interest income (NII) registered 13 per cent growth in the fourth quarter to Rs 610 crore from Rs 541 crore. The assets under management (AUM) of the company saw a 36 per cent growth to Rs 84,722 crore.
The company reported a 41 basis points (bps) dip in net interest margin from 3.59 per cent to 3.18 per cent as the average cost of borrowing for the company went up by 47 bps in the fourth quarter.
Gross non-performing assets (NPAs) for the company stood at 0.48 per cent of their loan assets as on March 31, 2019, against 0.33 per cent as on March 31, 2018. Net NPAs stood at 0.38 per cent of the loan assets as on March 31, 2019 against 0.23 per cent as on March 31, 2018.
“FY18-19 was a challenging year with tight liquidity, which impacted the overall Indian financial and real estate sectors. Amid such environment, we continued our focus on maintaining adequate liquidity, balanced ALM, efficient operations and robust asset quality. We would continue to maintain a balanced approach to business, with focus on asset quality, and improving profitability”, said Sanjaya Gupta, Managing Director of PNB Housing Finance.