Why PNB Housing Finance is the Best Investment Option for 2020?

The selection of an investment tool to park your surplus funds needs detailed information about the available options and their pros and cons. Since the last few decades, many NBFCs have entered the market with lucrative offers for investment.

Some of them offer a better rate of interest as compared to bank rates and have a firm market position. 2020 is going to witness many NBFCs operating better than some banks.

PNB Housing Finance
PNB Housing Finance

PNB Housing Finance has a vast experience in housing finance for more than three decades. The company has a highly efficient network of branches across India to help its customers in availing of a variety of financial services. It has the best FD plans and the highest FD interest rates available today.

The Best Investment Option in 2020

PNB Housing Finance is one of the leading NBFCs in India.

The company has a strong parentage and has survived impeccably in the recent stock market crisis.

As stated in a recent Economic Times article, the company is sure to improve its performance in 2020.

This analysis is on several factors.

Let’s have a look at these reasons, which have led the analysts to believe that it will be faring excellently.

  1. For the second quarter of 2019-20, the company’s net interest income (NII) elevated by 36% and net profit by 64% for this quarter. 
  2. It is believed that the company will be able to sustain its improvement in profitability due to the management’s effort to cost rationalization. Company’s ‘costs to assets ratio’ improved by 16 bps year over year. 
  3. The company is planning to improve efficiency levels of the existing branches across India instead of opening new offices. It will have a favorable impact on the customers and the market position of the company.  
  4. The positive effect of corporate tax rate reduction will be visible in the quarters to come. 
  5. The company has the best FD plans and offers the highest FD interest rates.  
  6. Working with diversified funding mix is another reason for the excellent performance of the company
  7. The company is continuously raising its funds to increase its lending power. It raised $175 million through ECBs (External Commercial Borrowing) and Rs. 500 crores through NCDs (Non-Convertible Debentures) in the second quarter of 2019-20. 
  8. It is planning to raise an additional Rs. 10,000 crores through secured and unsecured NCDs shortly. 
  9. The analysts expect that the company will raise around Rs. 2,000 crores through its equities.  
  10. If we believe grapevine, Premji Invest, Goldman Sachs Group, and Sunil Kant Munjal are in serious talks with the company for investing in it. The company is expecting an investment of Rs. 2,000 crores through the route of “limited preference” where the participation of a maximum of five investors is permitted.
  11. The grapevine indicates that Carlyle and General Atlantic, the two of its existing shareholders, will also contribute by infusing funds.

The above points strongly suggest that the variety of investment schemes of PNB housing finance are the best investment options for 2020.