PNB awaits regulatory nod for acquisition of Kazak bank

PNB awaits regulatory nod for acquisition of Kazak bank

New Delhi: State-owned Punjab National Bank (PNB) on Thursday said it is awaiting regulatory approval from Kazakhstan to acquire Dana Bank.

“We are in process of completing formalities. We have submitted application (to acquire Kazakhstan-based Dana Bank) to the regulator there," PNB chairman and managing director K. R. Kamath said after announcing second quarter numbers here.

“I am quite hopeful that things would fall in place and approval would come," he said.

PNB Board last year approved acquisition of 63.6% stake Dana Bank for an estimated $24 million.

The acquisition of Dana bank would also allow PNB to penetrate in CIS (Commonwealth of Independent States) countries.

Dana bank has five branches with a total business size of $60 million (around Rs276 crore).

PNB has a representative office in Kazakh city Almaty. The bank, which has presence in eight countries, is planning to open few more offices overseas, including Shanghai. It is also looking at setting up a subsidiary in Vancouver, Canada.

On capital raising plan, Kamath said the bank has a headroom of Rs7,200 crore under Tier II. Depending on interest rate situation and need, the bank would raise funds to meet credit growth.

If interest rates come down, the bank would raise resources, he said.

Asked about liquidity situation, Kamath said that there is pressure on liquidity as of now.