Have not carried a huge portfolio owing to high bond yields: PNB Gilts


The government releases its borrowing plan for H1FY19, which is considerably less than what they borrowed in FY18. In an interview with CNBC-TV18, SK Dubey, MD of PNB Gilts and Lakshmi Narasimhan, Executive Director of Shriram City Union Finance shared their views and outlook on the same.

We have not carried a huge portfolio in view of the fact that the bond yields were very high and we were not in a position to take call during the year-end, said Dubey.

Held-to-maturity (HTM) is at little less than Rs 900 crore and portfolio should be in the range of Rs 4,000-4,500 crore currently, he added.

Weighted cost of borrowing was 9.1 percent and the additional borrowing is less than 8.1 percent so it doesn’t shift the overall weighted cost of borrowing dramatically. The net interest margings (NIMs) should be maintained as we head into the next financial year, said Narasimhan.

We plan incremental borrowing of Rs 2,500 crore in FY19, he added.

Government’s announcement will help us a lot in terms of making our plans even clearer to hit the bond market, he further mentioned.moneycontrol