PNBHFL net up 76% to Rs 29 cr, reduce home loan by 50 basis points

New Delhi, Feb 7 (UNI) PNB Housing Finance Ltd (PNBHFL) today declared a 76 per cent increase in its net profit to Rs 28.87 crores for the nine months ended December 31, 2007, as against Rs 16.40 crore in the same period last year.

In view of the downward interest rate scenario, the company has also decided to reduce interest rates on home loans for new borrowers by 0.50 per cent with immediate effect.

For the nine months FY08, the profit before tax was Rs 41.80 crores as compared to Rs 23.69 crores in the corresponding period last year, a statement said.

In the same period the company's total income increased 51 per cent to Rs 159.97 crores from last year's Rs 106.14 crores.

The net worth of the company on December 31, 2007 was Rs 156.60 crores as compared to last year's Rs 126.02 crores.

The annualised earning per share (EPS) was Rs 12.83 as against last year's Rs 7.29. The book value per share as on December 31, 2007 was Rs 52.20, the statement added.

The company, which is Punjab National Bank's wholly-owned subsidiary, has already paid an interim dividend of 10 per cent for the year, absorbing a sum of Rs 3.51 crores, including dividend tax.

MD V K Khanna said, ''The Company is looking at higher business volume in the coming months. The Company is entering into tie-ups for promoting individual loans in the projects of various Builders across the country.'' ''The business potential is sufficient to ensure good growth in the current year. During the current financial year, the Company has also raised bonds aggregating Rs 450 crores. The amount raised is used to augment long-term resources of the Company,'' he added.

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