State-run Punjab National Bank may look at selling stake in PNB Housing Finance and PNB Gilts in the next financial year, to shore up its capital base. “We look forward to stake sale, may be during the next financial year. We have stake in some of the entities like UTI, PNB Housing Finance and PNB Gilts and if there are opportunities, we will certainly explore it,” managing director and chief executive Usha Ananthasubramanian said.
She said the bank may not sell stake in its life insurance arm PNB Metlife at this point. last October, the bank had listed PNB Housing Finance. In the quarter ended December, the bank posted a four-fold jump in net profit at `207 crore on account of increase in treasury income and decline in cost of deposits.
Its asset quality, however, deteriorated further as gross non-performing assets hit 13.70 per cent of the gross advances during third quarter of current fiscal as against 8.47 per cent a year ago. likewise, net NPAs rose to 9.09 per cent of net advances as of December quarter from 5.86 per cent in the year-ago period. With subdued demand, she expects credit growth to be at 6-7 per cent in the financial year 2016-17.