Punjab National Bank has received the central government’s approval to sell its stake in UTI Asset Management Co. Ltd.
The bank currently holds a 15.22% stake in the AMC and has received approval from the Department of Investment and Public Asset Management to sell its stake in one or multiple tranches, according to an exchange filing by the bank on Thursday.
PNB will sell a portion of its stake or the entirety of it to realise gains from its investment.
UTI AMC is promoted by four sponsors: State Bank of India, Life Insurance Corp. of India, Bank of Baroda, and Punjab National Bank. The four of them collectively hold 45.16% of the shares of UTI AMC.
PNB is yet to finalise a timeline for the sale. The sale will also require regulatory approval from the Securities and Exchange Board of India.
The bank reported a drop of 62.8% in net profits year-over-year in the second quarter of fiscal 2023. The drop in profits came against an 8% gain in total income, reaching Rs 23,000 crore.
PNB’s shares closed at Rs 50.80 apiece, up 0.89% for the day on Nov. 24.