Money & Banking

PNB plans to sell non-core assets worth ₹8,600 crore

PTI New Delhi | Updated on October 15, 2018 Published on October 15, 2018

The country’s second-largest public sector lender, Punjab National Bank (PNB), has identified various assets, including its housing finance arm, for sale, and hopes to realise ₹8,600 crore from these non-core assets during the current fiscal.

The bank has already sold some of its fixed assets, and have realised ₹400 crore.

“We plan to sell about ₹8,600 crore of non-core assets in the current financial year. We are on track,” said PNB Managing Director Sunil Mehta.

Merchant bankers

He further said that the bank has already appointed merchant bankers for the sale of its stake in PNB Housing Finance Company.

“Bidding has already been invited. Besides, the bank also wants to dilute its 4 per cent stake in the life insurance joint venture. A few of the fixed assets we have already sold out. Hopefully, we will able to meet the target,” he said. Asked if the the bank will sell its stake in the current market situation, Mehta said the market is expected to stabilise by the time the bidding and regulatory processes are completed.

He further said that there are a lot of important long-term investors who have shown interest in the housing finance company.

“They are going to acquire the entire stake of the company. Anybody who wants to acquire the entire stake of the company will be looking at the long-term profitability; the fundamentals of the company are still very strong,” he said.

He expressed hope that the bank will be able to get a good realisation from the stake sale.

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Published on October 15, 2018
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