The 10-year bond yield has spiked close to 7.3 percent this morning. In an interview to CNBC-TV18, Sanjaya Gupta, MD of PNB Housing Finance assessed the impact on their cost of borrowing.
Gupta said that increase in borrowing cost will rise slowly and not immediately.
He further said that about 82 percent of company's portfolio is on variable interest rate.
Gupta expects borrowing cost to rise by 12-15 bps for FY18.
Talking about business, he said we are not seeing stress in any segments of the book currently.
He added that construction finance is doing well and we are seeing sales velocity and good collection efficiency there.
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