"We will be selling part of our shares in PNB Gilts and PNB Housing if we get appropriate price from a potential buyer including from overseas firms," said K C Chakrabarty, chairman of the bank.
PNB Gilts is a listed company while PNB Housing is a wholly-owned subsidiary. It is likely that the bank will induct a joint venture partner in the housing company to fund its expansion.
PNB also plans to sell up to 10 per cent of the 25 per cent stake it holds in UTI Asset Management Company. "These (stake sells) could happen this fiscal," Chakrabarty added.
The bank, which will announce its fourth quarter numbers tomorrow, expects to maintain healthy profit margin in 2008-09. The bank was confident of meeting the annual net profit target for 2007-08, Chakrabarty told reporters after inaugurating micro a finance branch here. He had earlier said that the bank will record 18-20 per cent net profit growth in 2007-08.
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On interest rates, Chakrabarty said that the outlook remains stable in the near future and the bank has no plans to revise deposit and lending rates.
"There is no question of cutting deposit rates. We will be able to protect our net interest margin at 3.5-3.6 per cent," Chakrabarty said.
Though cash reserve ratio was further enhanced by 25 basis points on April 29, the Reserve Bank of India left all key rates untouched.