Punjab National Bank (PNB) on Friday sold over three lakh shares of rating agency ICRA for nearly Rs 109 crore through open market transactions.
Punjab National Bank (PNB) on Friday sold over three lakh shares of rating agency ICRA for nearly Rs 109 crore through open market transactions. “Pursuant to our Exchange filing on 08th June 2018 for stake sale of equity shares of ICRA Ltd; the Bank has sold its entire stake of 3,30,000 shares of ICRA Ltd. through Block deal at exchange platform for gross sale consideration of Rs. 108.60 Cr on 28.06.2018, public lender said in an exchange filing. PNB shares closed today at Rs 75.95 up 3.69 percent on BSE.
The bank had announced earlier this June that it would go for divestment of stake in its subsidiary PNB Housing Finance and other entities like BSE, ICRA and Crisil depending on the market conditions. The shedding of stake in non-core assets is part of PNB’s reforms agenda adopted in January this year.
PNB disposed of 3.30 lakh shares, amounting to 3.33 percent stake in ICRA, according to the BSE data.
Meanwhile, despite a spurt in net bad loans in the March quarter to 11.24 percent from 7.81 percent a year earlier, what has gone in favour of the bank is that before the fraud was detected, PNB had recorded profits of Rs 1,134 crore in the first three quarters of the last fiscal, better than many of its peers.
The state-owned bank is now looking at bolstering its retail push now. On a consolidated basis, its retail banking assets accounted for 20 percent of its overall exposure as of March, while corporate/wholesale banking made up for 44 percent.
PNB is one of the four public sector banks (PSBs) that are left with less than 1 percent of their capital base for lending after taking care of regulatory capital requirements under Basel-III. Reeling under the impact of the Nirav Modi fraud, PNB reported a capital adequacy ratio (CAR) of 9.2 percent at the end of March.