Punjab National Bank to divest entire 20% stake in ISARC; Stock ends higher

10 Jan 2022 , 04:00 PM

Punjab National Bank’s board has approved divestment of the entire stake in India SME Asset Reconstruction Company Ltd. (ISARC). ISARC has been incorporated on April 11, 2008, as an Asset Reconstruction Company (ARC).

The indicative time period for completion of the divestment of the entire stake (20.90%) in ISARC will be by the end of FY 2021-22 i.e. March 31, 2022, the company said in a filing on Friday.

The Reserve Bank has reviewed the policy on investment by banks in ARCs. Accordingly, it has been decided that banks may sponsor only one ARC at any point of time and banks’ investment in other ARCs should be less than 10% of the paid-up equity capital of the ARC subject to extant prudential norms on investments, Bank said.

In order to comply with the above guidelines issued by RBI, Bank is in the process of Divestment of entire stake (20.90%) in India SME Asset Reconstruction Company Ltd. (ISARC).

Punjab National Bank ended at Rs40.35 per share up by Rs1.45 or 3.73% from its previous closing of Rs38.90 per share on the BSE.