PNB Housing Finance Discloses Divergence in Asset Classification and Provisioning for FY2022-23

PNB Housing Finance Ltd. has received a communication from the National Housing Bank (NHB) regarding a divergence in Asset Classification and Provisioning for the Financial Year ended March 31, 2023. The divergence pertains to two corporate/project finance loan accounts where the company had reduced the rate of interest for competitive reasons. Although the loans were regular and not in default at the time of interest rate reduction, they were not in compliance with the Reserve Bank's directions. The total gross NPA stands at Rs. 3,204.94 crore, with an additional NPA of Rs. 933.58 crore due to inspection observations. However, there is no financial impact on the company as of now. This disclosure is being made as a good governance practice and will be included in the balance sheet for FY2025-26 as advised by the NHB.