PNB to buy 64% stake in Dana Bank

PNB to buy 64% stake in Dana Bank

Chandigarh: Public-sector lender Punjab National Bank Tuesday said it will buy a majority stake in Kazakhstan-based Dana Bank this fiscal for a consideration of around Rs93 crore.

“We hope that total outlay involved in buying the 63.64% stake in Dana Bank will be about $18-20 million ... and we hope the bank (Dana) will come into PNB’s fold by 31 March 2010," PNB executive director Nagesh Pydah told reporters here today.

Asserting that the bank intended to acquire majority stake in Kazakh bank at par and not at premium, Pydah said acquisition of Dana bank would also allow PNB to penetrate in CIS (Commonwealth of Independent States) countries as well.

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

PNB has already started giving training to its staff to be deputed in branches of Kazakhstan bank to learn Russian language to enable them to communicate in native language.

“We have already started imparting training in Russian language to our staff as most of the local people communicate in this language in Kazakhstan," he said.

Pydah said the bank expects to complete the due diligence within next ten days.

PNB has targeted to increase the share of business overseas from 3% of Balance sheet to 20% by 2013, he said.