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PNB Housing Finance has executed a revised Trademark Agreement (Agreement) with Punjab National Bank on 24 May 2021.
The existing brand arrangement dated 07 December 2009 will continue to govern use of PNB trademark until PNB's shareholding in the Company is 30% or more. Upon PNB's shareholding falling below 30%, the new Agreement will replace the existing Agreement.
The key terms of the revised Agreement dated 24 May 2021 are as under -
a. In the event PNB's shareholding in PNB Housing falls below 20%, PNB would have the right to
terminate the revised Agreement. In case of such termination, PNB Housing shall be allowed a
transition period of up to 24 months for change of Brand name.
b. Royalty Fee: PNB Housing will pay a royalty which is higher of 0.2% of Revenue and 2% of PAT
subject to a minimum charge of Rs 14.97 crore and a maximum charge of Rs 30 crore. The
royalty will be payable upon PNB's stake falling below 30%.
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