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PNB can’t sell housing finance stake just yet

PNB can’t sell housing finance stake just yet

Scam-hit Punjab National Bank (PNB) will not be able to raise additional funds by selling its entire stake immediately in PNB Housing Finance, with capital-market rules prohibiting the state-run lender from doing so within three years of listing. The housing finance company, which was listed on November 7, 2016, has a market capitalisation of Rs 20,000 crore, and PNB’s 33% holding in the listed subsidiary would fetch the lender Rs 6,700 crore at current market prices. Punjab National Bank cannot sell the entire stake in the listed mortgage company because of the lock-in until November 7, 2019.