Tuesday, June 24, 2014

J & K Bank Plans To Sell Its Entire 5% Stake In PNB MetLife

Jammu & Kashmir (J & K) Bank is exploring possibilities to sell its entire 5 % stake in the life insurance joint venture PBN MetLife India Insurance Company, sources said.

PNB MetLife is a joint venture between state-run Punjab National Bank (PNB), US-based MetLife Inc., J & K Bank, M Pallonji and Company, and other private investors. PNB and MetLife Inc. are the majority shareholders in the JV, with 30% and 26% stake, respectively.

Although the pricing has not been finalised yet, the mid-sized bank is expecting to raise about Rs.700 crore from the deal. As per the sources, the bank will use the capital to strengthen its core business, banking.

Majority stakeholders will have the first 'right to refusal' in buying J&K Bank's stake in the JV, said the sources, adding, “If they were not willing, the bank will search for a buyer outside the company."


 

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