PNB looking to pick up stake in Kazak bank
The country's second largest lender, Punjab National Bank, is in the process of picking up a stake in a small Kazak bank, Metrokombank. Talks are at a very preliminary stage as several things need to be looked into, including regulatory approval.
By PTI |
NEW DELHI: The country's second largest lender, Punjab National Bank, is in the process of picking up a stake in a small Kazak bank, Metrokombank.
PNB has been looking for acquisition in the oil-rich Central Asian state. Sources said the talks are at a very preliminary stage as several things need to be looked into, including regulatory approval.
For, the minimum capital requirement for opening a bank in the country is high. The current volume of trade between India and Kazakhastan also does not warrant this kind of investment. Therefore, buying stake in a small bank is a viable option, the sources said.
PNB currently has a representative office in Almaty. The bank, which is present in 8 countries, is planning to open few overseas offices, including a branch each in Shanghai, Dubai and some place in Norway.
It is also looking to set up a subsidiary in Vancouver, Canada, and a joint-venture in Bhutan.
Recently, the bank increased its branches by one each in Hong Kong and the UK.
PNB has been looking for acquisition in the oil-rich Central Asian state. Sources said the talks are at a very preliminary stage as several things need to be looked into, including regulatory approval.
For, the minimum capital requirement for opening a bank in the country is high. The current volume of trade between India and Kazakhastan also does not warrant this kind of investment. Therefore, buying stake in a small bank is a viable option, the sources said.
PNB currently has a representative office in Almaty. The bank, which is present in 8 countries, is planning to open few overseas offices, including a branch each in Shanghai, Dubai and some place in Norway.
It is also looking to set up a subsidiary in Vancouver, Canada, and a joint-venture in Bhutan.
Recently, the bank increased its branches by one each in Hong Kong and the UK.
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