PNB to sell stake

PNB to sell stake
08/03/2017 , by , in ALLIED

State-run Punjab National Bank is looking to sell an around 7% stake in mortgage lender PNB Housing Finance, two officials aware of the deliberations told.

At current price, a 7% stake in the newly listed company will fetch nearly Rs 1,200 crore.

“The bank is open to selling its stake in the firm. We have not decided on the amount or time of the stake sale,” managing director Usha Ananthasubramanian said. She didn’t provide further details.

The bank currently holds a 39% stake in PNB Housing Finance.

Private equity firm General Atlantic Singapore Fund Fii Pte owns a 6.90% stake in the mortgage firm, while the Government of Singapore holds another 1.07%.

“We have had some early discussions. There is a lot of interest as PNB Housing has a great portfolio, low non-performing assets and has done considerably well after it got listed,” said one of the officials, adding that the bank will look to maximise its returns from the proposed sale.

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