Punjab National Bank govt approval to dilute stake in UTI Mutual Fund

State-owned Punjab National Bank (PNB) on Thursday mentioned it has acquired the federal government approval to divestment its complete stake in UTI Asset Management Company Limited as a part of its non-core asset sale plan to shore up its capital base.

The financial institution, which holds 15.22% stake in UTI AMC, will divestment its complete stake in the mutual fund firm in single or a number of tranches for realization of achieve on investment. It’s present valuation stands at ₹1,329 crore.

“The Exchange is hereby knowledgeable that the Bank has acquired approval of DIPAM, Ministry of Finance, Government of India for divestment of Bank’s complete/half stake in UTI Asset Management Company Limited in single or a number of tranches topic to compliance of SEBI Regulations/different relevant regulatory pointers,” the financial institution mentioned in a regulatory submitting.

The timeline for making the divestment is but to be finalized, the financial institution mentioned.

PNB is without doubt one of the sponsors of India’s oldest mutual fund firm. Besides PNB, State Bank of India, Life Insurance Corporation of India, Bank of Baroda and US-based T Rowe Price are different sponsors.