Omkara ARC acquires Rs 7.84-bn loan from PNB Housing of Joyous Housing
ECONOMY & POLICY

Omkara ARC acquires Rs 7.84-bn loan from PNB Housing of Joyous Housing

Omkara ARC has reportedly acquired a loan outstanding of Rs 7.84 billion from PNB Housing Finance of Joyous Housing Limited. The transaction was executed at par and assisted the mortgage lender in addressing a substantial non-performing asset.

The account was purchased by Omkara ARC through an all-cash deal.

According to a stock exchange announcement, PNB Housing Finance declared the successful resolution of a significant corporate non-performing account (NPA) valued at Rs 7.84 billion, which constituted approximately 1.3% of the loan assets as of June 30, 2023. The resolution took place on August 19, 2023, subsequent to the ARC sale under the 'Swiss Challenge' method.

Joyous Housing had not been able to repay Rs 7.15 billion out of the Rs 8 billion secured construction finance obtained from PNB Housing. Alvarez and Marsal oversaw the process. However, PNB Housing, Omkara ARC, and Alvarez and Marsal did not provide immediate responses to inquiries regarding this development.

PNB Housing Finance reported gross NPAs of Rs 22.70 billion, which accounted for 3.76% of the loans by June 30. The company's total loans extended amounted to Rs 603.95 billion.

The company recently raised funds amounting to Rs 24.93 billion through a rights issue in May. The rights issue was oversubscribed by approximately 1.21 times and saw participation from PNB, Carlyle, Ares SSG, and General Atlantic. As of June 30, Carlyle held a 32.7% stake, PNB held 28.2%, and Ares SSG maintained a 9.9% ownership in the company. The mortgage lender's asset quality had notably deteriorated, with the gross NPA ratio rising to 8.1% on March 31, 2022, from 0.5% on March 31, 2019. Nevertheless, the company managed to reduce its stressed book through legal proceedings, one-time settlements, and write-offs, leading to an improvement in the gross NPA ratio, which stood at 3.83% by March 31 of the current year.

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Omkara ARC has reportedly acquired a loan outstanding of Rs 7.84 billion from PNB Housing Finance of Joyous Housing Limited. The transaction was executed at par and assisted the mortgage lender in addressing a substantial non-performing asset. The account was purchased by Omkara ARC through an all-cash deal. According to a stock exchange announcement, PNB Housing Finance declared the successful resolution of a significant corporate non-performing account (NPA) valued at Rs 7.84 billion, which constituted approximately 1.3% of the loan assets as of June 30, 2023. The resolution took place on August 19, 2023, subsequent to the ARC sale under the 'Swiss Challenge' method. Joyous Housing had not been able to repay Rs 7.15 billion out of the Rs 8 billion secured construction finance obtained from PNB Housing. Alvarez and Marsal oversaw the process. However, PNB Housing, Omkara ARC, and Alvarez and Marsal did not provide immediate responses to inquiries regarding this development. PNB Housing Finance reported gross NPAs of Rs 22.70 billion, which accounted for 3.76% of the loans by June 30. The company's total loans extended amounted to Rs 603.95 billion. The company recently raised funds amounting to Rs 24.93 billion through a rights issue in May. The rights issue was oversubscribed by approximately 1.21 times and saw participation from PNB, Carlyle, Ares SSG, and General Atlantic. As of June 30, Carlyle held a 32.7% stake, PNB held 28.2%, and Ares SSG maintained a 9.9% ownership in the company. The mortgage lender's asset quality had notably deteriorated, with the gross NPA ratio rising to 8.1% on March 31, 2022, from 0.5% on March 31, 2019. Nevertheless, the company managed to reduce its stressed book through legal proceedings, one-time settlements, and write-offs, leading to an improvement in the gross NPA ratio, which stood at 3.83% by March 31 of the current year. Also read:  Vande Bharat Express on Chandigarh-Jaipur in talks for commencement Railways expedite commercial land monetisation through private leasing

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