Punjab National Bank announced that in compliance with the RBI guidelines, the Board of the Bank has decided to sell its entire stake in Asset Reconstruction Company.
The Policy on Investment by banks in ARC's was reviewed by the RBI. Accordingly, it was decided that banks may sponsor only one ARC at any point of time and banks investment in other ARCs should be less than 10% of the paid-up equity capital of the ARC subject to extant prudential norms on investment. Thereafter, Bank was advised to comply with the above stipulation.
In order to comply with the above guidelines and based on the market scenario, Bank has decided to sell its entire stake of ARCIL.
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