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| PNB may seek Rs 3,000 crore of World Bank fund |
| BS Reporter / Chennai Oct 11, 2009, 00:08 IST |
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The country’s second-largest public sector lender, Punjab National Bank (PNB), is planning to seek Rs 3,000 crore from the proposed $3-billion (around Rs 15,000 crore) funding from the World Bank (WB) for recapitalisation of public sector banks in India.
Speaking to reporters after announcing a scholarship scheme launched in association with Ernst and Young, Nagesh Pydah, executive director of the bank, said the lender would need around Rs 16,000 crore in the next five years with most of the funds coming through internal accruals, he added.
Meanwhile, the bank is nearing the acquisition of Metrokombank, a Kazakhstan-based bank, for an estimated $15 million (around Rs 75 crore). “The capital requirement for setting up a bank is typically around $30 million (around Rs 150 crore). We will acquire a controlling stake of 51 per cent in the bank,” Pydah said.
He also estimated the bilateral trade between India and Kazakhsthan to be around $5.5 billion (around Rs 27,500 crore) and reiterated that there were no regulatory hurdles in the proposed acquisition. “PNB will also actively consider a foray into African markets, especially the pockets where other Indian banks have not entered before,” he added.
After having divested 26 per cent in PNB Housing Finance, one of its subsidiaries, the bank has set up a subsidiary for investment banking and will offer consultation relating to capital market deals, issue management services, valuation of projects through the subsidiary.
The subsidiary, called PNB Investment Services, has been soft launched with a corpus of Rs 25 crore. PNB has also planned a subsidiary for its factoring venture to promote its SME portfolio which is currently at Rs 2,400 crore and growing at 33 per cent.
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