PNB gets approval to set up bank in Bhutan

PNB gets approval to set up bank in Bhutan

Mumbai: State-run Punjab National Bank on monday said that it has received regulatory approval from the Royal Monetary Authority of Bhutan for setting up a bank in joint venture with the Bhutanese Promoters.

The Royal Monetary Authority of Bhutan has accorded in-principle approval for setting up Druk PNB Bank Ltd, a joint venture bank between PNB and Bhutanese Promoters, PNB said in a filing to the Bombay Stock Exchange (BSE).

Earlier this year, the country’s second largest public sector lender had said it has signed a memorandum of understanding with the Bhutanese counterpart, for which the bank had received approval from the Reserve Bank of India.

The JV entity — Druk PNB Bank Ltd — would have a paid-up capital of Rs30 crore and should be operational in the January-March quarter of 2009, PNB had said.

Besides, the bank is also eying overseas operations in Norway, Dubai, Shanghai and Singapore.

Shares of the bank were trading at Rs498.65, down 1.69% in the early morning trade on the BSE.