State-owned Punjab National Bank (PNB) has received the government nod to divest its entire stake in UTI Asset Management Company as part of its non-core asset sale plan to shore up its capital base.

The bank, which holds 15.22% stake in UTI AMC, will make the divestment in the mutual fund company in single or multiple tranches for realisation of gain on investment. At current valuation, the lender will get Rs 1,329 crore.

"The Exchange is hereby informed that the bank has received approval of DIPAM, Ministry of Finance, Government of India for divestment of bank's entire/part stake in UTI Asset Management Company Limited in single or multiple tranches subject to compliance of SEBI Regulations/other applicable regulatory guidelines," PNB said in a regulatory filing.

The timeline for making the divestment is yet to be finalised, the bank said.