No error of judgement in PNB Housing Finance deal: Rao

There was no error of judgement whereas finalising the Rs 4,000-crore fundraising plan for PNB Housing Finance (PNBHFL), Punjab National Bank (PNB) managing director SS Mallikarjuna Rao stated.
While talking at a convention on the financial institution’s June quarter earnings, Rao stated PNB is awaiting a call from the Securities Appellate Tribunal (SAT) on the PNB Housing Finance-Carlyle deal as it’s a matter of interpretation of legislation. The deal, first introduced on May 31, is caught in limbo as SAT has reserved its judgment.
“The decision taken by PNB Housing’s board was within Sebi guidelines. Considering the issues raised by the regulator in its June 18 letter, the PNB board had written to PNB Housing Finance’s board to follow the regulator’s guidance,” Rao, who can be the non-executive chairman of PNB Housing Finance, stated. Currently, PNB holds a 32.6 per cent stake in PNB Housing Finance.

Without specifying particulars of the PNB letter to the housing finance firm, Rao stated the financial institution had merely requested the corporate to observe Sebi’s instructions and had not directed any particular modifications.
Rao stated, “There was no error of judgement. If you have seen the share price of PNB Housing Finance in the last 2-2.5 years, it was hovering at below rate. ICDR guidelines clearly indicate the kind of formula to be used for pricing for listed entities.” fe