PNB Housing Finance, one of India’s major housing finance organizations, announced today that India Ratings and Research (Ind-Ra) has upgraded the Company’s non convertible debentures (NCDs) to ‘IND AA+’ with a Stable outlook from ‘IND AA’. Furthermore, the Ind-Ra NCDs limit has been divided into bank loans and NCDs, with the bank loans receiving a ‘IND AA+’ rating.
The key drivers for the rating upgrade, according to the rating rationale published on January 2, 2024, are granularization of the loan book (96% retail and almost complete rundown of the corporate book), robust capital buffers post equity infusion of INR25 billion through rights issue, improved asset quality, diversified resource profile with the ability to raise funds from banks and capital markets, adequate liquidity, and profitability improvement.
Girish Kousgi, MD & CEO, PNB Housing Finance commented, “This upgrade in our credit rating is a significant achievement for us and reinforces our strategy of being a prominent player in retail housing including affordable segment, improving key business metrics, and strengthening our asset quality. It is testament to the success of our holistic growth strategy, built on the pillars of growth in Loan Asset, reduction in leverage ratios, and diversified resource profile with access to capital markets. The upgrade has given us a great kick-start in the new year, and we will continue to build on this momentum through our dedicated efforts in this direction, paving the way for future growth opportunities.”
