PNB Housing Finance gets Rs 3,500 crore finance from NHB

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PNB Housing Finance said Monday it has secured a Rs 3,500-crore financing from the National Housing Bank (NHB).

The funds will be utilised for the specific sector wise disbursements / end uses as per norms of the respective NHB refinance schemes, it said in a release.

The fresh sanction of Rs 3,500 crore of long term funding will not only strengthen the liquidity of the company but also help in boosting the economic growth, said Sanjaya Gupta, Managing Director, PNB Housing Finance Limited.

The NHB refinance are of a maturity of up to 15 years hence shall help further enhance company's ALM, he said.

"This is yet another long-term source of borrowings followed to ECB of USD 200 million we raised in the current, challenging environment, driven by our strong fundamentals. With availment of these funds the share of long term borrowings will increase in the overall borrowings and aid our constant endeavour to keep short term money at levels of 12 per cent and below," Gupta said.

PHB Housing reiterated that as on date the company is very well placed both on liquidity and ALM position and continue to be cautiously optimistic.

The housing finance sector is facing liquidity crisis ever since IL&FS group companies reported defaults in loan repayment and that stock of various companies have witnessed severe beating on the stock exchanges.