Punjab & Sind Bank seeking clearance to buy 30% stake in SIDBI
The Punjab & Sind Bank (P&S Bank) is seeking clearance from the government to buy a 30 percent stake in the Small Industries Development Board of India (SIDBI) in a private placement deal. The transaction would also require special clearance from the Reserve Bank of India, which allows companies to invest only 10 percent equity in banks.
The bank expects to bring in around Rs 700 crore in the deal. Once cleared, SIDBI would become a strategic partner of the bank, according to the the Economic Times.
P&S Bank would help MSME financing by providing technical support from SIDBI.
The deal would help SIDBI expand its MSME business through the bank’s branch network, said the Economic Times.
