Punjab National bank has agreed to sell 26 percent stake in its wholly owned subsidiary, PNB Housing Finance (PNBHFL) to the US-based Destimoney Enterprises.

Destimoney Enterprises was earlier known as Dawnay Day. The bank will sell 78 lakh shares valued at Rs. 101.5 each.

KR Kamath, the bank's Chairman and Managing Director said, "The total value of the deal was Rs 217 crore. While the sum of Rs 79.16 crore has been paid to the bank by the company, the balance of Rs 137 crore would be converted to unsecured loan"

Kamath said that the move aimed at growing the housing finance arm into a bigger company as they had a much better vision for the company.

The debt will get converted into equity at Rs 101.50 per share according to the capital requirement of the company. With this, the stake of Destimoney will increase to 49 percent. However, PNB will still hold a majority stake of 51 percent.

Destimoney is a retail financial services company headed by its CEO Vivek Vig. Its business lines comprise - retail broking, distribution of financial products, wealth management and portfolio management services. It has 133 branches across 72 cities in the country.

PNB feels that this collaboration with Destimoney would result in sharp growth in business.

PNB is all set to introduce branchless banking by establishing kiosks in unbanked villages. The move would enable the bank to reach out to wider population and create a larger customer base.