InvestorQ : Does PNB look to sell its stake in subsidiaries to shore up its capital?
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Does PNB look to sell its stake in subsidiaries to shore up its capital?

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4 months ago
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PNB has two options to shore up its cash. It can either raise funds externally or through internal sources. There has been expectation that PNB could look to monetize its stake in some of its non-core subsidiaries. This would give them enough cash for the time being to ride out the storm post the COVID-19 lockdown and handle the higher potential NPAs.

In the midst of these efforts, Punjab National Bank has confirmed that any major strategic monetization of its subsidiary holdings was likely at this point of time. While valuation may be one issue, PNB does not want to look desperate. PNB has a number of associates like PNB Housing Finance, PNB Gilts and PNB Met Life etc with a significant stake.

However, PNB feels that the market conditions are not ripe for divesting financial units. Instead, PNB proposes to sell some of its parcels from the land bank for immediate monetization and liquidity. PNB is holding some very valuable chunks of real estate in North and Western parts of India which can easily be monetized for the time being.

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