trending Market Intelligence /marketintelligence/en/news-insights/trending/m2_gd4heacno9ugv3eoida2 content esgSubNav
In This List

Punjab National Bank may raise 130B rupees via asset sales, bad loan recovery

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Punjab National Bank may raise 130B rupees via asset sales, bad loan recovery

India's Punjab National Bank may raise 130 billion rupees from the sale of part of its stake in PNB Housing Finance Ltd., recovery of bad loans and sale of noncore assets, BloombergQuint reported June 1, citing a senior government official.

The fraud-hit bank holds a 39.08% stake in PNB Housing Finance. The state-run bank is expected to raise part of the capital from the second-tranche of the government's capital infusion in the three months through September, the sale of property at Bhikaji Cama Place in New Delhi and recovery of dues from firms undergoing insolvency proceedings, the report said.

The news came after Punjab National Bank in May reported a net loss of 134.17 billion rupees for the quarter ended March 31 due to higher provisions allocated for the alleged US$2 billion fraud. Less than a week after releasing the results, Moody's downgraded the bank's ratings due to the negative impact of the alleged fraud on its capital as well as its weak internal controls.

As of June 1, US$1 was equivalent to 66.97 Indian rupees.