Shares of state-owned public sector lender Punjab National Bank (NSE 4.73%) rose more than 5.5% in Friday’s trade after the bank decided to sell its entire stake in Asset Restructuring Corporation (ARCIL) at an agreed price. PNB will divest approximately 3,25,06,486 shares or 10.01% of ARCIL.

In its filing to the BSE, PNB said: “The RBI has reviewed the bank’s investment policy in the ARC. As such, it has been decided that the bank can only sponsor one ARC at any point in time, while the bank’s investments in other ARCs per the current prudent investment norm should be less than 10% of ARC’s paid-up share capital. Banks are advised to comply with the above.”

PNB’s withdrawal from ARCIL requires central bank approval. The license for RBI will be obtained upon signing a Share Purchase Agreement (SPA) between PNB and the purchaser.

At 2.07 pm, the stock was trading 5.17% higher at Rs 36.60 from the previous day’s close of Rs 34.80. The stock is up about 26% in the past three months after falling nearly 9% last year.