Carlyle group exits joint stake sale with PNB in PNB Housing Finance

The joint sale process to divest equity in PNB Housing Finance (PNBHFL) by PNB and Carlyle Group has been terminated post the latter's exit from the sale plan, the state-owned bank said Tuesday.

Carlyle Group has withdrawn from the joint stake sale process and the joint stake sale process has been terminated, as jointly communicated by PNB and QIH to the company on November 13, 2018, Punjab National Bank (PNB) said in a regulatory filing.

"That said, PNB will continue to pursue and proceed with an independent sale of its shareholding in PNBHFL," PNB said.

A communication regarding this independent stake sale has been sent by PNB to the board of directors of PNBHFL, it said further.


PNB and Carlyle Group via its investment vehicle Quality Investment Holdings (QIH) in July had said that they will jointly sell their stakes in PNB Housing Finance.

As per the original plan, PNB and Carlyle Group had planned to sell at least 51 per cent stake in the mortgage lender PNB Housing Finance.

The state-owned lender owns 32.79 per cent stake and Carlyle Group, through its investment vehicle QIH, owns 32.36 per cent of the paid up equity share capital of PNB Housing Finance.

In May this year, QIH sold 4.8 per cent stake in PNB Housing Finance for Rs 10.24 billion through an open market transaction.


PNB Housing Finance, a subsidiary of PNB, claims to be among the top five housing finance companies with assets under management of Rs 734.82 billion as on September 30, 2018.

It posted a 33 per cent jump in net profit at Rs 2.53 billion in second quarter ended September of the current fiscal, as against Rs 190 crore in year ago same period.

PNB shares closed 0.21 per cent down at Rs 70 while PNBHFL settled flat at Rs 956.60 on BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel