PNB seeks deal with tax department to sell old headquarters for Rs.1,000 crore

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Punjab National Bank (PNB), which is currently looking forward to liquidating some of its assets, aims to enter into a deal with the tax department to sell its old headquarters in South Delhi. The bank expects to gain up to Rs.1,000 crore from this transaction. Considering the high value of this deal, the bank has decided to opt out of a transaction involving private players in a bid to avoid controversy.

PNB

According to an executive from PNB, the bank is currently in talks with both the income tax department and the indirect tax department regarding the sale of the building. Along with the negotiations, the process of sale has been started by the lender. The bank is also currently working on getting permissions from local authorities in order to proceed with this sale.

PNB is still recovering from the Rs.14,000 crore scam that was sensationalised across the national media for the last few months. As a result, non-performing assets skyrocketed for the bank and the provisions allocated to cover these losses have also mounted. The lender reported consecutive losses in the last two quarters, and it is currently in the process of liquidating its assets to cover these losses.

As a part of its fundraising drive, PNB is now looking for a buyer to acquire its 32.8% stake in PNB Housing Finance. The lender has also sold a part of its stake in PNB Metlife for the same reason. The government is currently watching out for any potential manipulation of PNB Housing Finance share prices by potential buyers to acquire the shares at a lower value.

The lender has already sold a few of its assets in a bid to raise money. PNB recently sold a property in central Delhi to another financial institution in a deal valued at Rs.47 crore. In addition to this, the bank is currently in the process of identifying properties that can be offered for sale under this fundraising initiative.

Source: Economic Times

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