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PNB to sell entire stake in Isarc for ₹34 crore to streamline portfolio

In a significant step to streamline its investment portfolio, Punjab National Bank (PNB) on Tuesday said it has signed an agreement to offload its entire stake in India SME Asset Reconstruction Company Ltd (Isarc) for ₹34.04 crore. The state-owned bank confirmed in a stock exchange filing that "the bank has entered into a definitive i.e. 13.05.2025, to sell its entire stake in M/s India SME Asset Reconstruction Company Limited (ISARC), an associate company of the bank". The deal involves the sale of 2.09 crore shares at ₹16.29 each, with the transaction expected to wrap up by the end of the first quarter of the 2025–26 financial year. The move aligns with PNB's wider strategy to primarily focus on its core banking operations while exiting non-core investments. The Reserve Bank of India had in March approved a change in sponsor as well as an equity infusion from M/s Authum Investment and Infrastructure Limited, who will now take over PNB's shareholding in ISARC. Isarc, jointly promoted by SIDBI, Bank of Baroda, PNB, and SIDBI Venture Capital Ltd, focuses on reviving distressed assets in the small and medium enterprises (SME) sector. In FY24, the company reported a capital base of ₹129.68 crore, assets worth ₹130.11 crore, and an income of ₹18.08 crore. Its profit before tax stood at ₹10.65 crore, while profit after tax came in at ₹9.37 crore. PNB clarified that this is not a related-party transaction and does not fall under any merger or slump sale arrangement. PNB's shares closed at ₹97.65 on the BSE on Tuesday, marking a 1.93% rise from the previous day's close.