Punjab National Bank (PNB), the second largest public sector lender in the country has marked multiple assets, including its housing finance arm, for sale in order to realise Rs. 8,600 crores from these non-core assets during the current fiscal. The bank had earlier sold some of its fixed assets and have collected around Rs 400 crore from the sale.
In an interview to PTI, PNB Managing Director Sunil Mehta said, “We plan to sale about Rs 8,600 crore of non-core assets in the current financial year. We are on track.”
He added, “Bidding has already been invited. Besides, the bank also wants to dilute its 4 per cent stake in the life insurance joint venture. Few of the fixed assets we have already sold out. Hopefully, we will able to meet the target.”
He further stated that the merchant bankers for sale of its asset in PNB Housing Finance Company have already been appointed. He also made a remark on the bank selling its stake in the current market situation, stating that the market is expected to stabilise by the time of bidding and regulatory process are complete.
On the sell-off of the housing finance company, he stated, “There are a lot of important long-term investors who have shown interest. 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 and the fundamentals of the company are still very strong.”