PNB has decided to sell its entire stake in India SME Asset Reconstruction Company Ltd (ISARC) for ₹34.04 crore as part of a strategic push to streamline its non-core investments and sharpen its focus on core banking operations. The public sector lender signed a definitive agreement on May 13, 2025, to sell 2.09 crore shares at ₹16.29 each. The deal is expected to be completed by the end of the first quarter of FY26.
This exit comes after the Reserve Bank of India gave its nod in March to allow a change in ISARC’s sponsor and fresh equity infusion by M/s Authum Investment and Infrastructure Limited, which will now take over PNB’s shareholding. ISARC was initially promoted by SIDBI, Bank of Baroda, PNB, and SIDBI Venture Capital to revive distressed SME assets.
For FY24, ISARC posted an income of ₹18.08 crore and a profit after tax of ₹9.37 crore, with assets valued at ₹130.11 crore. PNB clarified that the transaction is neither a related-party deal nor a slump sale. On Tuesday, PNB shares closed at ₹97.65 on the BSE, up by 1.93%.
