The bank proposes to divest 10.25 million equity shares in the life insurer at ₹117.20 apiece, taking the transaction value to ₹120.1 crore. The sale is subject to execution of definitive documentation, receipt of required approvals and completion of other formalities.
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Stake to reduce
Following completion of the transaction, Jammu and Kashmir Bank’s holding in PNB MetLife will decline to 2.534% from 3.034%. The bank said the sale will not result in a change in control of PNB MetLife and is not a related-party transaction. PNB MetLife is a life insurance company regulated by the Insurance Regulatory and Development Authority of India.
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In May, Jammu and Kashmir Bank reported a 36.5% year-on-year increase in fourth-quarter net profit to ₹798 crore from ₹585 crore a year earlier, while net interest income rose 0.5% to ₹1,487.5 crore from ₹1,480 crore.
Indian equity benchmarks ended lower on Tuesday, with the BSE Sensex falling 0.72% to 77,054.94 and the Nifty Bank index declining 1.15% to 57,462.30. Jammu and Kashmir Bank shares closed at ₹178.20, down 2.41% from the previous close.
Meanwhile, the second-quarter earnings season gathered pace in the US banking sector, with Goldman Sachs reporting a 78% year-on-year rise in profit to $6.6 billion, while JPMorgan Chase posted a record quarterly profit of $21.2 billion, up 41% from a year earlier.
