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| PNB to buy 64% stake in Dana Bank for Rs 93 cr |
| Press Trust of India / Chandigarh Nov 24, 2009, 18:45 IST |
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Public-sector lender Punjab National Bank (PNB) today said it will buy a majority stake in Kazakhstan-based Dana Bank this fiscal for a consideration of around Rs 93 crore.
"We hope that total outlay involved in buying the 63.64 per cent stake in Dana Bank will be about $18-20 million ... And we hope the bank (Dana) will come into PNB's fold by March 31, 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 Rs 276 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 10 days.
PNB has targeted to increase the share of business overseas from 3 per cent of Balance sheet to 20 per cent by 2013, he said.
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