Friday, February 8, 2008

PNB following downward interest rate scenario cuts home loan rates

First the second largest private sector bank HDFC following the guidelines of the RBI reduced home loan rates. Working on the same lines PNB Housing Finance, a subsidiary of Punjab National Bank, reduced home loan rates by 50 basis points for new borrowers.

“In view of the downward interest rate scenario, the company has decided to reduce interest rates on home loans for new borrowers by 0.50 percentage points with immediate effect,” PNB Housing said in a press release.

During the nine months ended December 31 the company reported 76% growth in net profit at Rs 28.87 crore. The total income of the company rose 51% to Rs 159.97 crore during April-December 2007 compared with Rs 106 crore in the year-ago period.

VK Khanna, managing director, PNBH, said: “The company is looking at a higher business volume in the coming months. It is entering into tie-ups for promoting individual loans in the projects of various builders across the country."

Punjab National Bank had recently said that it planned to either register PNB Housing Company or introduce a strategic partner into the company.

The net worth of the company was Rs 156.60 crore, as on December 31, 2007. The book value per share was Rs 52.20, as on December 31.

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