Sale of stake in Associate of the Bank
Awaiting price reaction for this filing.
Punjab National Bank has completed the sale of its entire 20.90% stake (2.09 crore shares) in India SME Asset Reconstruction Company Limited (ISARC), an associate company, on 17.06.2025. The buyer is Authum Investment and Infrastructure Limited, which received RBI approval for the change in sponsor on March 25, 2025. PNB received a cash consideration of Rs. 34.05 crore at Rs. 16.29 per share. The transaction is not a related party transaction and was carried out outside any scheme of arrangement. ISARC had contributed 19% to the bank's turnover/revenue/income and net worth in FY24-25.
This is a minor divestment for PNB — the Rs. 34 crore cash inflow is small relative to the bank's size (PAT of Rs. 19,793 crore in FY25). Shareholders are unlikely to see a material impact on stock price or earnings, though it signals PNB's exit from non-core asset reconstruction activities.