Punjab National Bank has no plans to further bring down its stake in PNB Housing Finance or give up its promoter category, CEO Atul Goel said; after rights issue, PNB’s stake in its housing finance arm fell from 32.52% to 28.15%.
Punjab National Bank (PNB) said it has no plans to divest any more stake in PNB Housing Finance Ltd, its housing finance subsidiary, and would continue as its promoter.
After the bank participated in the rights issue of its housing finance arm, its stake had come down to 28.15%.
" We participated in the rights issue of PNB Housing Finance Ltd to the tune of Rs 498.75 crore in line with regulatory requirements, which mandated the promoter holding to come below 30%. This is what we have done. There is absolutely no plan to bring down the stake or give up the promoter category," PNB managing director and chief executive officer Atul Kumar Goel told analysts.
The public sector bank has already got the Reserve Bank of India's (RBI) approval on February 6, 2022 to infuse up to Rs 500 crore for subscribing to PNB Housing Finance shares in the proposed rights issue.
PNB participated in the rights issue of PNB Housing Finance as it wanted to retain the promoter title. For this, the bank had to retain more than 26% of the shareholding in its housing finance arm. The transaction was done in cash, the bank’s regulatory filing stated.
Post allotment in rights issue, the bank's shareholding in PNB Housing Finance reduced from 32.52% to 28.15%.
