India’s Punjab National Bank gets nod to offload stake in UTI AMC | Popgen Tech
Punjab National Bank (PNB), a state-owned lender in India, has secured approval from the Indian government to divest its entire stake in UTI Asset Management Company (UTI AMC).
Established in 2002, UTI AMC handles the investment management operations of UTI Mutual Fund.
The firm also handles offshore funds as well as offering support to India’s specified venture Unit Trust.
India’s four major public sector financial giants, State Bank of India, Life Insurance Corporation of India, Bank of Baroda and PNB, together hold a 45.16% stake in UTI AMC.
The latest approval, given by the department of investment and public asset management (DIPAM) under the Ministry of Finance, allows PNB to carry out the sale either in one phase or in several phases .
The sale is part of the bank’s strategy of selling non-core assets to increase its capital.
PNB, which currently holds a 15.22% stake in UTI AMC worth about INR13.29bn ($162m), is yet to decide on the timeline or value of the divestment.
The approval is subject to Securities and Exchange Board of India (SEBI) compliance.
PNB said in a regulatory filing: “The Exchange is hereby informed that the Bank has received the approval of DIPAM, the Ministry of Finance, the Government of India for the divestment of the entire share /part of the Bank in UTI Asset Management Company in single or multiple segments subject to compliance. of SEBI Regulations/other applicable regulatory guidelines.”