PNB Housing Finance has provided a clarification regarding an inspection by the National Housing Bank concerning asset classification for the financial year ending March 31, 2023. The review identified an additional Rs. 933.58 crore in non-performing assets related to specific corporate loans. The company confirms that there is no financial impact on current operations, as these accounts were regular and not in default, representing a good governance transparency initiative.
Clarification on Asset Classification
PNB Housing Finance has issued an update regarding a regulatory review of its asset classification and provisioning for the financial year 2022-23. The review highlighted a divergence in classification for two specific corporate and project finance loan accounts, which resulted in an additional Rs. 933.58 crore being identified under non-performing assets (NPA) as of March 31, 2023. When combined with the previously reported Rs. 2,271.36 crore, the total gross NPA stands at Rs. 3,204.94 crore.
Status of Affected Accounts
The discrepancy originated from a commercial decision by the company to reduce interest rates on these two accounts for competitive reasons, which was deemed non-compliant with specific industry directions. However, the company maintains that these accounts were regular and not in default at the time of the rate reduction. Currently, one of the two accounts has been fully closed, while the outstanding balance of the second account has been significantly reduced from Rs. 335.19 crore to Rs. 67.39 crore.
Financial and Operational Outlook
PNB Housing Finance has confirmed that this disclosure does not result in any adverse financial impact on the company. The update is being provided as a proactive measure to ensure transparency and sound governance. The company is committed to integrating this information into its financial reporting for the 2025-26 fiscal year, ensuring alignment with all necessary reporting standards.
Source: BSE
