NHB Flags 933 Crore Additional Bad Loans in PNB Housing Finance's Books

Mumbai, April 3: PNB Housing Finance has been directed by the National Housing Bank (NHB) to disclose an additional 933.58 crore in bad loans for March 2023.

Original vs Revised NPAs

• Originally reported gross NPAs: 2,271.36 crore

• Additional NPAs identified: 933.58 crore

• Revised total gross NPAs: 3,204.94 crore

Reason for Divergence

The divergence stems from restructuring carried out in FY22-23 that was found to be non-compliant with regulatory norms. It relates to two project finance loan accounts where interest rates were reduced for competitive reasons, despite both accounts being standard and regular at the time.

Current Status of the Two Accounts

• Loan 1 (598.39 crore): Fully repaid

• Loan 2 (67.39 crore): Reduced significantly and continues to remain regular

Company Statement

PNB Housing Finance stated that there is no financial impact at present and that the disclosure is being made as a matter of good governance.