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Sunday, September 19, 2021

No error of judgement in PNB Housing Finance deal: Rao

While speaking at a conference on the bank’s June quarter earnings, Rao said PNB is awaiting a decision from the Securities Appellate Tribunal (SAT) on the PNB Housing Finance-Carlyle deal

By: ENS Economic Bureau | New Delhi |
Updated: August 4, 2021 10:50:50 am
Without specifying details of the PNB letter to the housing finance company, Rao said the bank had merely asked the company to follow Sebi’s directions and had not directed any specific changes. (Representational )

There was no error of judgement while finalising the Rs 4,000-crore fundraising plan for PNB Housing Finance (PNBHFL), Punjab National Bank (PNB) managing director SS Mallikarjuna Rao said.

While speaking at a conference on the bank’s June quarter earnings, Rao said PNB is awaiting a decision from the Securities Appellate Tribunal (SAT) on the PNB Housing Finance-Carlyle deal as it is a matter of interpretation of law. The deal, first announced on May 31, is stuck in limbo as SAT has reserved its judgment.

“The decision taken by PNB Housing’s board was within Sebi guidelines. Considering the issues raised by the regulator in its June 18 letter, the PNB board had written to PNB Housing Finance’s board to follow the regulator’s guidance,” Rao, who is also the non-executive chairman of PNB Housing Finance, said. Currently, PNB holds a 32.6 per cent stake in PNB Housing Finance.

Without specifying details of the PNB letter to the housing finance company, Rao said the bank had merely asked the company to follow Sebi’s directions and had not directed any specific changes.

Rao said, “There was no error of judgement. If you have seen the share price of PNB Housing Finance in the last 2-2.5 years, it was hovering at below rate. ICDR guidelines clearly indicate the kind of formula to be used for pricing for listed entities.” fe

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