Chennai: Punjab National Bank (PNB), India’s second largest state-owned bank, faces delays in setting up its Canadian subsidiary. The bank that was previously in talks with some 10 firms has shortlisted three firms Bharathi Axa Life, Aviva India and MetLife India Insurance Company Limited, its managing director K.R.Kamath said on Wednesday.
PNB’s overseas operations with an established presence in about nine countries constitutes about 3% of their total business. The nationalised bank received the go ahead to set up in Vancouver, Canada from the Reserve Bank of India in 2010. It was earlier reported to have expected the licenses to be granted by December 2010, but is still waiting for the Canadian central bank to approve their operations. A capital investment of Rs.100 crore would be required for the expansion.
Kamath said that its partnership with the three insurance companies will be finalised by the end of this quarter.