PNB set to foray into Canada

Punjab National Bank (PNB), India's second largest public sector bank, is set to foray into the Canadian market by setting up a subsidiary with an estimated capital of Rs 100 crore, a top bank official said today.

The bank currently has operations in countries such as England, China and Dubai. Canada would be the latest foray of the bank in the overseas market.

"We will be setting up our subsidiary there. It will initially serve the Indians living there. A capital of Rs 100 crore will be required," Punjab National Bank chairman & managing director KR Kamath told reporters here.

Kamath said the 100 crore capital required would help increase PNB's presence in Canada.

"We want to increase our presence their by setting up more branches. When we entered London, we had required capital of a similar amount to establish a subsidiary there. Today, we have seven branches in London alone."

Asked about PNB's future plans for the overseas markets, he said they had recently set up a representative office in Norway and planned to open a similar one in Australia.

On their proposal to enter the life insurance business, Kamath said they would decide about a partner in the coming quarter as the bank was holding talks with them.

"We have shortlisted three life insurance companies -- Aviva, MetLife and BhartiAXA. We are expecting it to be released by the coming (third or fourth) quarters. We are looking to tie up with a company who already has a presence in the (insurance) industry," he said.

Kamath said PNB had started mobilising the business in Central Asian country Kazakhstan. Last year, the bank picked up a majority stake in Kazakhstan-based Dana Bank for about $23.7 million (about Rs 104 crore).