Punjab National Bank (PNB) has signed a supplemental agreement to divest its entire stake in India SME Asset Reconstruction Company Ltd (ISARC), amounting to ₹34.04 crore, as part of its non-core asset divestment strategy.
Key Highlights
- Stake Sold: 2.09 crore shares in ISARC
- Share Price: ₹16.29 per share
- Total Deal Value: ₹34.04 crore
- Deal Closure Expected: By Q1 of FY 2025–26
- New Buyer: M/s Authum Investment and Infrastructure Ltd, as approved by the RBI in March 2025
- Transaction Type: Not a related-party deal; not part of any merger or slump sale
Strategic Rationale
- Aligns with PNB’s strategy to focus on core banking operations
- Part of the bank’s move to streamline its investment portfolio by exiting non-core ventures
- Reflects government and PSU efforts to optimize performance and consolidate focus areas
About ISARC (India SME Asset Reconstruction Company Ltd)
- Objective: Revive and resolve distressed assets in the SME (Small & Medium Enterprises) sector
- Sponsors:
- SIDBI
- Punjab National Bank (PNB)
- Bank of Baroda
- SIDBI Venture Capital Ltd
Financials (FY 2023–24)
- Capital Base: ₹129.68 crore
- Total Assets: ₹130.11 crore
- Total Income: ₹18.08 crore
- Profit Before Tax: ₹10.65 crore
- Profit After Tax: ₹9.37 crore
About Punjab National Bank (PNB)
- Founded: May 1894
- Headquarters: New Delhi
- Customer Base: Over 180 million
- Network: More than 12,248 branches and 13,000+ ATMs across India
- Ranking: Second largest public sector bank in India by business volume