It said the subsidiary was a professionally managed entity with “very strong” internal control systems and processes with independent set of data centres, branch network and customers.
“The appointment and engagement of IT partners, system and cyber auditors are independent,” PNB Housing Finance said. PNB sold a 5.9 per cent stake in PNB Housing Finance during this financial year and monetised Rs 13.21 billion out of the stake sale.
Kotak Institutional Equities said in a report on Thursday that PNB can sell stake in its subsidiaries and joint ventures to raise money after being affected by the scam that could trigger prompt corrective action (PCA) by the Reserve Bank of India.
A PCA may put restrictions on the lending capacity of the public sector bank.
"PNB can take part in a combination of stake sales in few valuable entities like PNB Housing Finance (33 per cent worth Rs 66 billion), insurance (10 per cent stake in Metlife), and mutual funds (17 per cent in UTI MF) to raise funds but since these are contractual arrangements, it can delay unlocking of this value," the report stated.