Pedestrians walk past a Punjab National Bank (PNB) branch in Mumbai, India.(Photographer: Dhiraj Singh/Bloomberg)

Punjab National Bank To Sell Stake In Housing Finance Firm, Other Units

Punjab National Bank today said that it will divest stake in its subsidiary PNB Housing Finance Ltd. and other entities like BSE Ltd., ICRA Ltd.and Crisil Ltd. depending on market conditions.

The shedding of stake in non-core assets is a part of PNB's reforms agenda adopted in January this year. “The board of directors vide e-circulated agendas approved on June 8, 2018, has authorised the management to initiate the process and take appropriate decision to disinvest stake in PNB Housing Finance, ICRA Ltd, CRISIL Ltd and BSE Ltd at appropriate time depending on the market conditions and options available,” the bank said in a regulatory filing.

The disinvestment is in line with the reforms agenda unveiled on Jan. 24 for public sector banks which are facing mounting bad loans and frauds like the Rs 13,000 crore scam at PNB, allegedly carried out by diamond jeweller Nirav Modi and his associates.

Also read: PNB May Get Rs 13,000 Crore From Asset Sale, Equity Infusion

PNB Housing Finance is one of the main subsidiaries of PNB engaged in the business of providing housing and construction loans. The lender had a stake of 32.96 percent in the subsidiary on March 31, 2018.

Financial institutions and banks had a collective stake of 0.26 per cent at the end of March this year in credit rating agency CRISIL Ltd. In BSE Ltd., the total public shareholding, including that of PNB, was 67.80 percent. In ICRA Ltd., PNB holds 3.43 percent stake.

Stock of PNB closed 5.06 per cent up at Rs 90.40 on BSE.