PNB share jumps 7% on governments nod for disinvest in UTI AMC
PNB, UTI AMC, Disinvestment: The trade was amid very high volumes as 15.75 crore shares were on the block around this time.
PNB, UTI AMC, Disinvestment: Punjab National Bank shares shot 7.5 per cent on NSE in the intraday trade on Centre's nod to the state lender to divest its stake in UTI AMC. The stock was also the top Bank Nifty gainer and was trading at Rs 54.70 around 10 am.
The trade was amid very high volumes as 15.75 crore shares were on the block around this time.
In an exchange filing on Thursday, PNB informed that it has got an approval to disinvest in Mutual Fund company, UTI Asset Management Company Limited.
The stock has also hit a 52-week high at Rs 52.45.
Disinvestment detail:
The Government has approved PNB to disinvest its entire stake in UTI AMC in single or multiple tranches for realisation of gain on investment. PNB holds a 15.22 per cent stake in UTI AMC.
“The Exchange is hereby informed that the Bank has received approval of DIPAM, Ministry of Finance, Government of India for divestment of Bank's entire/part stake in UTI Asset Management Company Limited in single or multiple tranches subject to compliance of SEBI Regulations/other applicable regulatory guidelines. The details in respect of the same are enclosed as Annexure,” the exchange filing read.
According to the filing, the timeline for making the divestment is yet to be finalised.
PNB is one of the sponsors of India's oldest mutual fund company. Besides PNB, State Bank of India, Life Insurance Corporation of India, Bank of Baroda and US-based T Rowe Price are other sponsors.
The bank had posted a net profit of Rs 1,105 crore in Q2FY23.
The total income of the bank in the second quarter of the current fiscal increased to Rs 23,001.26 crore against Rs 21,262.32 in the September quarter a year ago, PNB said in a regulatory filing.
The bank's net interest income increased by 30.2% YoY to Rs 8,271 crore in the second quarter of FY23.
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