The Nirav Modi scam hit state-run lender PNB on Friday announced plans to divest stake in non-core assets as part of the reforms strategy adopted in January 2018. The bank in a regulatory filing to the exchange said, "The board of directors vide e-circulated agendas approved on June 8, 2018, has authorized the management to initiate the process and take appropriate decision to disinvest stake in PNB Housing Finance, ICRA Ltd, CRISIL Ltd and BSE Ltd at appropriate time depending on the market conditions and options available".
The divestment plan of PNB will be in sync with the reform agenda proposed for the ailing public sector banks which are reported to be saddled with huge NPAs. And the crisis situation at PSBs has further worsened in the wake of scams and as the government withdrew several loan restructuring schemes and tightened other measures.
PNB Housing Finance is one of the main subsidiaries of the state run lender in which it enjoys close to 33% stake as on March 31, 2018. The company primarily extends loans for construction and housing. In other entities such as ICRA, PNB holds 3.43% stake. In credit rating firm CRISIL, the banks together with other financial companies hold a combined stake of close to 0.26% as on March 2018.
The scrip of Punjab National Bank closed the week higher by 5.06% at Rs. 90.40 on the BSE.