PNB reduces stake in PNB Housing
Punjab National Bank (PNB) and PNB Housing Finance (PNBHF) were buzzing in the early morning trade on Friday following stake sales to two large alternative investment firms.
General Atlantic Group, which already holds 9.91 per cent in PNBHF, and American investment firm VardePartners bought 1,08,91,733 equity shares each of PNBHF at Rs. 850 per share for a total of Rs. 1,851.60 crore, on Friday. The deal is subject to regulatory approvals.
Punjab National Bank is the parent bank of PNB Housing Finance (PNBHF). The bank holds 32.79 per cent in the PNBHF, which post this transaction will come down to 19.78 per cent. In a filing to the exchange, PNB has said that it will continue to be a promoter and strategic holder in the housing finance company.
PNBHF ranks fifth in the Indian HFC segment in terms of loan book size. The company offers retail home loans, loans against property, non-residential property loans, lease rental discounting, construction finance and corporate term loans.
Public sector bank PNB is going through rough times after the exposure of Rs. 14,000 crore scam wherein the bank was duped by diamond jewellers Nirav Modi and Mehul Choksi. The bank is striving to put its house in order by liquidating non-core investments to unlock capital, improve its balance sheet and resolve bad loans.
On Friday, Punjab National Bank (PNB) was trading at Rs. 97.15 per share, up by Rs. 1.89 per cent, while PNB Housing Finance was trading at Rs. 847.05 per share, up by Rs. 17.55 or 2.12 per cent on BSE in early morning trade.