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Dawnay Day to buy 26% of PNB Housing

New Delhi, May 20: Private equity firm Dawnay Day will pick up a 26 per cent stake in the housing finance subsidiary of Punjab National Bank.

“Today, the board (of the bank) decided to divest a 26 per cent stake in PNB Housing Finance Company in favour of Dawnay Day with a provision to issue fresh capital at a later date to take the divestment up to 49 per cent,” PNB chairman K.C. Chakrabarty said.

The country’s second-biggest public sector lender expects to mop up about Rs 77 crore from the share sale.

“We have invested Rs 7 crore and expects to get 10-11 times from the 26 per cent stake sale,” Chakrabarty said.

PNB today reported a 59 per cent jump in net profit at Rs 865 crore for the fourth quarter ended March 2009 against Rs 544 crore in the corresponding quarter of the last fiscal. Total income rose 38 per cent to Rs 6,098 crore from Rs 4,417 crore.

“The board has declared a dividend of Rs 20 a share (face value of Rs 10) for the financial year ended March 31, 2009,” said Chakrabarty.

For the fiscal ended March 2009, PNB posted a 51 per cent jump in net profit at Rs 3,090.90 crore against Rs 2,048.80 crore a year ago.

Industry sources said PNB Housing Finance had a loan portfolio of around Rs 4,000 crore and was being valued at Rs 300-350 crore.

The company is gearing up to expand its loan portfolio and, thus, needs to enhance its Tier I capital base, sources said.

For the year ended March 2009, PNB Housing Finance has reported a 22 per cent growth in total income at Rs 277.21 crore against Rs 227.14 crore a year ago. Its profit after tax rose 32 per cent to Rs 53.41 crore from Rs 40.59 crore in the previous fiscal.

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