Page 15 - Banking Finance April 2019

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

PNB to sell part stake in housing finance arm for Rs National Housing Bank
1,852 crore plans stronger capital

Punjab National Bank is selling part of its stake in PNB Housing Finance to glo- norm for housing finance
bal private equity firm General Atlantic
Group and alternative investment firm companies
Varde Partners for Rs 1,851.60 crore. National Housing Bank (NHB) is plan-
After the transaction, PNB will continue to ning to raise
long term
hold a 19.78 per cent stake in the housing
finance arm, and will remain the promoter capital re-
and strategic shareholder of the company, quirement
the lender informed the stock exchanges for housing
on Friday. As of December 31, 2018, PNB finance com-
held 32.79 per cent in PNB Housing Finance. PNB will sell 10.89 million equity panies (HFCs) to guard against their li-
shares each to General Atlantic and Varde Partners at Rs 850 per share, aggre- quidity and solvency risks. The housing
gating to Rs 1851.60 crore. regulator has proposed to raise their
capital adequacy ratio to 13% by
In July 2018, PNB Housing Finance had informed the exchanges that PNB and
March 2020 from 12% now as a fall-
Quality Investment Holdings (QIH) of the Carlyle Group were considering a joint out of the IL&FS-led crisis which forced
stake of a minimum 51 per cent in the company. However, in November, the several specialised home loan lenders,
housing finance firm said PNB would independently pursue and proceed with the especially the smaller one, to slow
sale of its shareholding to financial investors via a competitive bidding process.
down business to preserve liquidity.
The draft amendments have pro-
Indiabulls Housing front runner to pick stake in Lakshmi
posed raising the CAR to 15% in a
Vilas Bank staggered manner by March 2022,
Indiabulls Housing Finance has emerged as the front while suggested a higher cap on bor-
runner to pick up a minority stake in Lakshmi Vilas Bank rowing. "HFCs are exposed to risks
(LVB). Sources said Indiabulls Housing Finance will ac- arising out of counterparty failures,
funding risks and risks pertaining to
quire the stake in LVB though a share swap deal.
liquidity and solvency as any other
The reported also said that LVB plans to utilise the fund financial sector player. There is thus
raised for tier I capital. "PE players are also keen to a need for a review of the regulatory
invest in LVB. Stake sale of over 5 per cent would require approval from the framework of HFCs,' NHB said in a
RBI. KPMG, JPMorgan heard to be advisors to the transaction," report added. note to stakeholders.

BANKING FINANCE | APRIL | 2019 | 15