Fraud-hit Punjab National BankNSE -0.84 % plans to raise Rs 13,000 crore through stake sale in subsidiaries and recovery of bad loans by September end, an official said today.
The PSU lender, among other things, is planning to sell stake in its arm PNB Housing Finance where it holds 39.08 per cent.
“The bank is planning to sell stake in the housing finance company. Besides, it hopes to recover some of its bad loans through the IBC resolution process,” the official added.
The bank also plans to sell its property at Bhikaji Cama Place in New Delhi.
Moody’s Investors Service had last month downgraded PNB’s rating citing impact of the recent USD 2 billion fraud on its capital as well as weak internal controls.
The country’s second largest PSU bank has suffered a loss of over Rs 14,000 crore on account of fraud carried out allegedly jewellery designer Nirav Modi and has provisioned for half of the amount in the January-March quarter.
The remaining half would be provisioned for the April-June quarter.
In the January-March quarter, PNB reported a net loss of Rs 13,417 crore as compared to a net profit of Rs 261.9 crore in the same period of the previous fiscal.
Source: Economic Times