PNB To Sell Off 7% Of Its Stake In PNB Housing Finance

As many companies become the victim of high currency note ban and are into process of selling their stakes, PNB too is heard to sell off its 7% stake in PNB Housing Finance. The state-run bank is not in a hurry to take its decision and the sale of the stake may take place in next fiscal year, i.e. starting from April 2017.

At present, the bank holds 39% of the total share with the Housing Finance while other firms including General Atlantic Singapore Fund Fii Pte, a private equity firm, and Government of Singapore holds 6.9% and 1.07% shares, respectively, with the mortgage lender.

Although, the bank has decided to sell off its stake to the firms, the amount or time has not been decided as yet. Moreover, PNB managing director Usha Ananthasubramanian also confirmed that the bank is looking towards the share in insurance joint venture with Metlife.

PNB Housing Finance was listed on exchange in November. It had delivered a net profit of Rs. 137.8 crore for the quarter through December which came out to be 53% more than the year before. By the end of the quarter, its gross NPA was calculated to be 0.37% of loan assets, as compared to 0.35%, a year earlier. The firm made it to the rise in total income to 41%, i.e. Rs. 998.7 Crore.

In addition to the selling of its stake, the Punjab National Bank is also looking forward to monetise its real estate assets.

Meanwhile, government has asked the bank to sell off their non-core assets in order to raise the capital regardless of their status caused due to bad loans.