NEW DELHI: PNB Housing Finance expects to better manage its bad debts starting this month, when the court-scheduled borrower easing deadline ends on August 31 and asks borrowers to start repaying if they are able to do so, a senior company official said.

The company’s gross non-performing assets (APM) jumped to 6% of gross advances (or Rs 3,625 crore) in the quarter ended June 30, 2021, from 2.7% at the end of June 2020, mainly due to of the impact of the second wave of the pandemic.

The increase in NPAs is also due to legal forbearance until August 31, 2021, in accordance with High Court orders, the company said after its June quarter results last week.

Various courts and high courts across states have told lenders not to take any legal or administrative action during the second wave of the pandemic, which mainly spread in April and May.

“During the quarter, there were 45 days of confinement. So there was hardly any activity during this period.

“We plan to manage them better from this month even though we have managed to withdraw some NPAs. We withdrew around Rs 80 crore from the NPA in July itself,” said Hardayal Prasad, Managing Director and CEO of PNB Housing Finance. PTI in an interview.

The restrictions have caused some problems on the recovery front, he said.

He added that if someone has borrowed money from the business, the person is obligated to return it unless there is a death in a family or someone’s business. be wiped out.

“But, if you’ve borrowed, your business is working. I have every right to ask for my money,” Prasad said.

However, the company will be considerate enough to find a solution on a case-by-case basis if there are genuine borrowers facing a repayment problem, he added.

The company’s COVID-19 restructured loans stood at Rs 1,733 crore as of June 30, 2021.

It recorded a 5% drop in net profit to Rs 243 crore in the first quarter ended June 2021, from Rs 257 crore in the quarter last year.

The company, promoted by the Punjab National Bank, said its collection efficiency was lowest in May due to the second wave of the pandemic. However, it saw a rise in June and further in July, he added.

Asked about Carlyle’s Rs4,000 crore equity injection deal, the case of which is awaiting a final order from the Securities and Appellate Tribunal (SAT), Prasad said: “C ‘ is a pending matter. So we do not comment on this part. ”

“Once they (SAT) place an order, we’ll take a call,” he said.

In June, market regulator Sebi asked the company to assess the issue price of Rs 390 per share for the transaction with a registered independent appraiser.

Currently, the share price of PNB Housing Finance is trading at over Rs 700 each on the exchanges – BSE and NSE.

However, PNB Housing Finance has approached the SAT on this matter, and the final order is awaited as both parties, Sebi and PNB Housing, have reportedly completed their arguments in this case.

Regarding the investment in shares of the US-based Carlyle Group announced on May 31, controversy arose after a proxy advisory firm SES said it was not in the best interests of minority shareholders of the company and that the agreement was ultra vires the Articles of Association (AoA).

As a result, Sebi blocked PNB Housing Finance from moving forward with shareholder voting on the proposed Rs 4,000 crore deal with the Carlyle Group, and ordered the company to lead the process of assessment in accordance with the relevant legal provisions.

PNB Housing Finance has declared that it has acted in accordance with all applicable laws, including applicable pricing regulations prescribed by Sebi and the Company’s AoA.

The preferential allocation is in the best interests of the company, he said in June.

The company has not raised equity capital over the past three years, with the exception of shares issued under the employee stock option plan.

Earlier in February this year, the Reserve Bank of India (RBI) rejected PNB’s proposal for a capital injection into its subsidiary PNB Housing.

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