PNB sells entire stake in Icra for Rs 109 crore

Punjab National Bank has sold its entire stake in ratings firm Icra Ltd for a consideration of Rs 109 crore.

"The bank has sold its entire stake of 3,30,000 shares of Icra Ltd through block deal at exchange platform for gross sale consideration of Rs 108.60 crore on June 28, 2018," the bank said in a regulatory filing.

As a planned strategy, the state-owned lender wants to hive-off from non-core businesses. Among others, the board of directors has authorised its management to start taking decisions to divest stake in PNB Housing Finance, Crisil and BSE at appropriate time depending upon market conditions and available options.

Also Read | PNB sells stake worth Rs 109 cr in Icra

The disinvestment is part of the reforms agenda of the public sector banks (PSBs) which was approved in January for responsive and responsible PSBs initiative.

At the end of March quarter, PNB held 3.43 per cent stake in Icra. In PNB Housing Finance, which is promoted by the bank, it held 32.96 per cent as on March 31, 2018.

In Crisil and BSE Ltd, banks and financial institutions have a collective shareholding of 0.26 per cent and 0.09 per cent, respectively, as on March 31, 2018. Stock of PNB closed 3.69 per cent higher at Rs 75.95 apiece on the BSE today.