State-run Punjab National Bank has sold a 26 percent stake in its fully-owned unit PNB Housing Finance to financial services firm Destimoney for Rs 79.17 crore.
Destimoney, formerly known as Dawnayday, will further bring in Rs 137 crore into PNB Housing Finance, which will be converted to equity over two years, a statement from PNB Housing Finance said. By the end of the period, Destimoney will hold 49 percent of the unit, the statement added.
Destimoney is owned by private equity firm New Silk Route, which has $1.4 billion under management. PNB first announced the transaction in May this year. PNB Housing Finance reported a total income of Rs 277.21 crore for FY09, with an increase of 32% in net profit for the fiscal year at Rs 53.41 crore.
Home loans are a fast growing segment in the Indian economy with several global financial services firms showing interests in the space. BNP Paribas, AIG Capital, Barclays and Societe Generale are some of the firms who have bough substantial stakes in local housing finance firms.