AllBank Finance Ltd, the non-banking finance subsidiary of Kolkata-based Allahabad Bank, will be starting its merchant banking operation shortly. | |
| O N Singh, chairman and managing director, Allahabad Bank, said, "We have already received the licence for offering merchant banking services and will start operations in the next three-four months." |
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| He was speaking to mediaperson on the sidelines of the bank's annual general meeting on Sunday. Singh added, "We are currently searching for a chief executive officer (CEO) to run the merchant banking operations based in Mumbai." The operation would be in line with SBI Capital Markets, Singh explained. |
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| Meanwhile, about a subsidiary in Kazakhstan, Singh informed that the bank was on the look out for buying a local bank in Kazakhstan. |
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| "The target bank has not yet been finalised. The initial capital base of the joint venture will depend on the acquisition but the figure could be around $15 million," Singh said. |
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| The Punjab National Bank will be holding 60 per cent stake in the JV, whereas the remaining stake will be held by Allahabad Bank. |
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| On the other hand, the bank is awaiting clearance certificate from Japanese regulator Financial Services Agency (FSA) before signing a shareholder agreement with Sompo, the proposed foreign partner in the general insurance foray of Allahabad Bank along with three other Indian players- Dabur, Karnataka Bank and Indian Overseas Bank. |
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| "We have already signed memorandum of understanding with Sompo. We are awaiting a clearance certificate from FSA after which we will sign shareholders agreement," Singh said. |
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| Meanwhile, several other international players have started showing interest to be a part of the consortium. "Ernst & Young is looking into the matter," said Singh. |
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| Referring to the closure of Industrial Investment Bank of India (IIBI), Singh who is also the chairman of the bank, said that it will cause a loss of Rs 500 crore to the government ex-chequer. |
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