Shares of state-owned Punjab National Bank (PNB) surged more than 7 percent, hitting a 52-week high after the lender received the government’s approval (when?) to sell its stake in UTI Asset Management Company Ltd, India’s oldest fund house.
This paves the way for PNB to exit one of its non-core businesses. The bank’s share price hit a 52-week high on Friday.
At November 25 market price, its 15 percent stake will be worth about Rs 1,376 crore.
PNB has expressed its desire to exit non-core businesses such as mutual funds and insurance and pocket investment gains as much as possible.