The housing finance arm of Punjab National Bank, PNB Housing Finance is planning to dilute 49% of its stake and is also in discussion with several investors for the same.
The company is currently evaluating the term-sheets and sources close to development say that GE Capital and Tata Capital are amongst the top most interested investors. "We are evaluating the term-sheets and the transaction will be closed in the current quarter," said an executive with PNB.
Tata Capital is seen to have keen interest in the mortgage space. Recently it had also bid for IDBI Home Finance.
Meanwhile sources said that the loan portfolio of the firm is near to Rs 4,000 crore and is being valued at Rs 300-350 crore. The company is planning for an aggressive expansion of its loan portfolio and therefore it requires money to enhance its tire-I capital base.
The firm has reported a year on year growth of 22% during the fiscal and its profits has increased by 32% in the FY 09. Also the net non performing assets (NPAs) have declined to 0.30% from 0.32% in FY 08.
The company attracts interest of many investors due to a booming home loan market in India. The share of housing loan in the total credit extended by the banks has increased significantly to 11.8% in 2006-07 as compared to 3.2% in 1998-99.
On the other hand, housing loan share within the personal loan portfolio has also risen from 27.7% in March 1998 to 52.8% in March 2007.
The housing loan market has grown in the recent past as home loans increased by more than 30% in the last few years. However in the recent past, the segment has witnessed a slowdown due to the sub-prime crisis that hit the globe. Moreover the growth is expected to slow to 8-10% during the ongoing fiscal.
Source:Rupee Times