Morgan, Goldman, Credit Lyonnais pick up 7% in PNB

Three foreign investors, Morgan Stanley Dean Witter, Goldman Sachs Investments and Credit Lyonnais (Singapore) Merchant, have picked up close to 7 per cent in Punjab National Bank.

Morgan Stanley Dean Witter has picked up around 3.32 per cent, Goldman Sachs Investments another 2.17 per cent and Credit Lyonnais (Singapore) Merchant 1.42 per cent.

Morgan Stanley Dean Witter, and Goldman Sachs Investments were categorised as overseas corporate bodies (OCB). Credit Lyonnais was a foreign financial investor.

Total FII holding in the bank was at 5.51 per cent. Total NRI/OCB holding at another 7.73 per cent. The overall foreign holding in PNB in the March 2004 quarter stands at 13 per cent against 8.72 per cent in the previous quarter - a 90 per cent growth. Sources close to the development said that the FII interest in PNB was also fueled by the possibility of merger with a development finance institution "" IFCI.

The merger of IFCI with PNB will however require placing a fresh statute, for the current legislative framework does not allow the merger. While nationalised banks, are statutory corporations set up under the Banking Companies Acts, IFCI was registered under the Companies Act "" as a non-banking financial institution making the merger illegal.