PNB Housing Finance must look at cost of funds, rising defaults: Experts

It factored in clarity around the equity fundraise in recent months and continued strong resource-raising ability at competitive rates

With the capital infusion issue put behind, the road is clear for PNB Housing Finance (HFC) to be back in the game as a formidable player.

But, for getting on to a sustainable growth path, it will have to address issues like reducing cost of funds, growth in times of pandemic and rising risk of defaults.

A former board member on PNB HFC said the company was hamstrung by bad loans in real estate and equity capital infusion. This had hit performance to the extent of forcing it to shrink its loan book. Now, both issues have been addressed and it can