PNB acquires majority stake in Dana Bank

PNB acquires majority stake in Dana Bank

New Delhi: State-owned Punjab National Bank (PNB) on Monday said it has picked up majority stake in Kazakhstan-based JSC Dana Bank for about $23.7 million (about Rs104 crore).

The bank has completed the transaction for acquisition of 63.64% stake in JSC Dana Bank in Kazakhstan, PNB said in a statement.

PNB has done the acquisition at about $23.76 million, it said.

This transaction shall be placed for necessary ratification in the General Body meeting of JSC Dana Bank scheduled to be held in Almaty on 15 December, it said. This acquisition would 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). Out of which three at Almaty, Pavlador and Karganda are operational and the remaining two at Astana & Taraz shall be soon operationalised.

There are plans to open two more branches at Atrau & Akhtau in the year 2011, it said.

PNB has a representative office in Kazakh city Almaty since 1998.

The bank, which is present 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.

PNB said that Kazakhstan the largest economy in Central Asia has strategic importance for India due to growing economic cooperation between two countries at the apex level.

In order to systematically achieve the aspiration of becoming a truly global and universal bank in the foreseeable future, it said, operational presence in Kazakhstan has been considered crucial for PNB due to growing bilateral business opportunities and per capita income in Kazakhstan, which has natural resources aplenty.

Many Indian Oil & Gas, Pharmaceuticals and Engineering Companies have already set up offices in Kazakhstan, it said, adding further there being no other Indian bank in CIS countries other than Russia, Kazakhstan can be a gateway for CIS countries for tapping India centric business.

This would be bank’s third overseas JV after Everest Bank Ltd, Nepal and Druk PNB Bank Ltd in Bhutan.