CARE Ratings upgrades PNB Housing Finance’s range of tools. Here’s why

Credit rating agency CARE Ratings said in a filing to the exchange on Saturday that it has upgraded various facilities/instruments of PNB Housing Finance from CARE AA (Positive) to CARE AA+ (Stable).

Products whose ratings were upgraded include long-term bank loans, short-term and long-term bank loans, bonds, long-term products, non-convertible debentures (NCDs), second-class bonds, time deposits, and commercial products. document.

The rating upgrade assigned to PNB Housing Finance (PNBHFL) derives strength from improved asset quality reflected in its GNPA ratio of 1.73% as on December 31, 2023 compared to GNPA ratio of 8% as on March 31, 2022, the filing said. said. Additionally, the rating revision continues to reflect PNBHFL’s strong market position as the country’s third-largest housing finance company (HFC) by loan assets as of December 31, 2023, and its well-diversified resource profile and filings. insisted.

“The rating continues to take into account the brand association with Punjab National Bank (PNB) (CARE AAA rated, stable), the promoters of PNBHFL and the consistent support derived from the promoters,” the filing added.

PNB Housing Finance has underperformed the markets in 2024, posting negative returns of over 20% so far compared to Nifty, which has returned 2.7% during the period. However, the stock’s return of nearly 48% over the past 12 months is higher than the 30% upside seen in the Nifty over the same period.

The recent correction has taken the stock below its 50-day and 200-day simple moving average (SMA). Momentum indicators RSI and MFI reported by Trendlyne show that the stock is trading in a mid-range range. The former is at 38.3 while the latter is hovering around 34. Anything above 70 is considered overbought, anything below 30 is oversold. On Thursday, the PNB Housing Finance share price closed at Rs 627.65 on the NSE, down Rs 2.70 or 0.43 per cent from its previous close. Trading was halted on Friday due to Good Friday. Also Read: Block transactions worth Rs 16,600-cr to take place this week. Mankind Pharma, Shriram Finance have taken significant steps.

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