A subsidiary of Punjab National Bank, PNB Housing Finance has announced an immediate reduction in its home loan interest rates by 50 basis points for its new borrowers.

The press release by PNB Housing Finance stated that the main reason behind this move is the recent trend in the industry of decreasing interest rates.

The company has earned a net profit of Rs 28.87 crore during April-December 2007, reporting a growth of 76%.

The total income of the company during this period was Rs 159.97 crore, which is 51% rise as compared to the period of April-December 2006.

On December 31,2007, the net worth of the company was reported to be around Rs 156.60 crore and the book value of share was Rs 52.20.

VK Khanna, managing director of PNB Housing Finance was quoted as saying “The Company is looking at a higher business volume in the coming months. It is entering into tie-ups for promoting individual loans in the projects of various builders across the country”.

The recent good performance of PNB Housing Finance has initiated Punjab National Bank to either list the company or bring in a strategic partner in the company, so as to maintain the steady growth.