PNB Housing Fin lowers interest rates by 0.50 per cent

Soon after public sector lenders like Canara Bank and Allahabad Bank slashed home loan rates PNB Housing Finance, a subsidiary of Punjab National Bank, on Thursday reduced rates by 50 basis points or 0.50 per cent.

While announcing a cut in the home loan rates, PNB Housing on Thursday said the reduced rates will be applicable to new borrowers with immediate effect.

The company has slashed the rates in view of the softening interest rate scenario throughout, PNB Housing said in a release here.

Meanwhile, the company has posted a growth of 76 per cent in its net profit after tax at Rs 28.87 crore for the nine- month period ending December 31, compared to Rs 16.40 crore for the corresponding period last year.

Led by the growing demand in the housing finance sector the company's total income witnessed a 51 per cent growth at Rs 159.97 crore in the nine-month period till December, against Rs 106.14 crore for the same period in the previous year.

"The company is looking at higher business volume in the coming months... (it) is entering into tie-ups for promoting individual loans in the projects of various builders across the country," the company's Managing Director V K Khanna said, while announcing the results today.

PNB Housing Finance, has raised about Rs 450 crore through bonds during the current financial year to fund its long term resources, it added.