PNB Housing Finance fails to meet mandatory borrowing requirement by way of debt securities
New Delhi: PNB Housing Finance could not meet the mandatory borrowing by way of debt securities in fiscal 2019-20 due to “subdued debt market”.
The company clocked incremental borrowing of Rs 21,870 crore in fiscal 2019-20. Any company India has to mandatorily borrow 25 percent of its incremental borrowing through issuance of debt securities.
Since PNB Housing Finance had incremental borrowing of Rs 21,870 crore it had to borrow Rs 5,467.50 crore through issuance of debt securities but the company could borrow only Rs 3,000 crore through this route. Thus the company fell short of Rs 2,467 crore, it said in a regulatory filing.
The company could not meet the mandatory requirement because of subdues market, it said.
The company said that the long-term debt securities market remained subdued for NBFC and housing fisjncce companies in fiscal 2019-20. Hence, PNB Housing Finance was not able to tap the debt securities market for meeting the mandatory requirements.
Its outstanding borrowing was Rs 58,475 crore as on 31 March 2020.