Punjab National Bank (PNB), the country’s second largest public sector bank, has received approval from the Department of Investment and Public Asset Management (DIPAM) to sell part of its holding or its entire stake in UTI Asset Management Company Ltd (UTI AMC).
“The bank has received approval of DIPAM, Ministry of Finance, Government of India for divestment of bank’s entire/part stake in UTI Asset Management Company Ltd in single or multiple tranches subject to compliance of SEBI regulations/other applicable regulatory guidelines.” PNB said in a regulatory filing with the stock exchanges.
The timeline for making the divestment is yet to be finalised.
Currently, PNB has 15.22 per cent stake in UTI AMC. Besides PNB, the other sponsors of UTI AMC are State Bank of India, Life Insurance Corporation and Bank of Baroda. The four sponsors collectively hold 45.16 per cent stake in the asset management company.
In October 2020, PNB — which then had about 18 per cent stake in UTI AMC — had sold 3 per cent holding in UTI Mutual Fund and earned about ₹180 crore from the transaction.
In 2021-22, UTI AMC recorded total income of ₹1060.27 crore compared to ₹942.33 crore in the previous year.
It maybe recalled that UTI AMC got listed in the bourses in mid-October 2020. It became the third AMC to get listed on stock exchanges after Nippon Life India Asset Management and HDFC AMC.
UTI AMC has been active in the AMC industry for over 57 years now.