PNB to sell entire stake in ARCIL as per RBI guidelines; stock adds ~1%

30 Sep 2022 , 09:55 AM

Punjab National Bank informed that in compliance with RBI guidelines, the Bank’s board has decided to sell its entire stake in M/s Asset Reconstruction Company (India) Ltd (ARCIL) at an agreed price.

Currently, PNB holds a 10.01% stake in ARCIL.

“The Policy on Bank Investment in ARCs was reviewed by the Reserve Bank of India.  As a result, it was concluded that Banks may sponsor (as specified in Section 2(1)(zh) of the SARFAESI Act,2002) only one ARC at a time, and banks’ investment in other ARCs should be less than 10% of the ARC’s paid-up equity capital subject to existing prudential investment standards,” said PNB in its regulatory filing.

The company expects to complete the divestment by December 31, 2022. It includes the signing of SPA, permission from RBI, and subsequent receipt of funds.

Following that, PNB will no longer be a sponsor/shareholder in ARCIL.

PNB plans to sell 3,25,06,486 equity shares at an agreed price, constituting a 10.01% stake.

At around 9.57 AM, Punjab National Bank was trading at Rs35.15 up by 1.01% from its previous closing of Rs34.80 on the BSE. The scrip opened at Rs35.40 and touched intraday high and low of Rs35.80 and Rs35.10 respectively.

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