US-based equity investor Carlyle Group and Punjab National Bank have dropped their plans to sell their stakes in PNB Housing Finance Ltd, reported The Economic Times. The decision came after bidders appeared to backtrack from their proposals following the fall in the valuation of the housing finance unit.

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“With the valuation being halved from the time the negotiations started, the two large stakeholders — Punjab National Bank and Carlyle — have shelved the plan to sell stake for now…This is a buyers’ market. It is unlikely that the two shareholders will sell,” a person close to the development was quoted as saying in the report.

While no comments where available from the part of the US investor, bank stated in the report that the sale process is still on. The development, according to the report, is the latest ‘casualty in the deals segment after a sudden liquidity squeeze has upset the funding mechanism of non-banking finance companies.’