In an exchange filing, the PSU lender said, “The bank has sold its entire shareholding in Asset Reconstruction Company (India) (ARCIL) to Avenue India Resurgence Pte on 29 March 2023 and has ceased to be a sponsor in ARCIL.”
The Reserve Bank of India (RBI) has reviewed the policy on investment by banks in Asset Reconstruction Companies (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 investment.
In terms of RBI approval, stake sale has been completed and the shares have been transferred to the buyer, the bank stated.
ARCIL was set up in 2002 and is among the leading ARCs in the country. The company recorded a revenue of Rs 301.71 crore in FY 2021-22.
Meanwhile, the board of directors of the bank has approved raising of capital up to Rs 12,000 crore through basel III compliant AT-1/tier II bonds (AT-1 bonds up to Rs 7,000 crore and tier- II bonds up to Rs 5,000 crore), to be raised in one or more tranches.
Punjab National Bank is engaged in the business of treasury, corporate/wholesale banking, retail banking, other banking operations. As on 31 December 2022 Government of India held 73.15% stake in the bank.
Punjab National Bank reported 44.19% decline in net profit of Rs 628.88 crore on 16.78% rise in total income to Rs 25,772.40 crore in Q3 FY23 over Q3 FY22.
Shares of Punjab National Bank gained 0.91% to Rs 46.63 on the BSE.
Powered by Capital Market - Live News