PNB to acquire Dana Bank, waits for approval from Kazakhstan

Public sector lender, Punjab National Bank is waiting for approval from Kazakhstan for the acquisition of Dana Bank.

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

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

In fact, last year PNB Board had approved acquisition of 63.6 per cent stake Dana Bank for an estimated USD 24 million.

With the acquisition of Dana Bank, PNB will be able to penetrate in CIS (Commonwealth of Independent States) countries.

There are five branches of Dana bank doing a total business of USD 60 million (around Rs 276 crore).

At present PNB representative office is operating in Kazakh city Almaty. The bank is also having branches in eight countries, and is planning to open few more offices overseas, including Shanghai. Bank is planning to set up a subsidiary in Vancouver, Canada.

Regarding capital raising plan, Kamath said the bank is having a headroom of Rs 7,200 crore under Tier II. The bank will raise funds to meet credit growth after scrutinizing the interest rate situation and need.

He informed, in case interest rates are reduced the bank will raise resources for funds.

Regarding liquidity situation, Kamath said at present there is pressure on liquidity.