Allbank-PNB Kazakh JV on hold

Allahabad Bank's proposed joint venture with Punjab National Bank (PNB) for setting up a banking subsidiary in Kazakhstan is understood to have been put on hold.

Allahabad Bank sources said no progress had been made so far regarding the formation of the JV, where PNB was likely to take the major role with a shareholding of 60%.

The Kolkata-based bank was supposed to hold 40% in the JV.

The sources said Allahabad Bank, along with three others partners - Indian Overseas Bank, Karnataka Bank and Dabur would approach Insurance Regulatory Development Authority (IRDA) during the middle of January for obtaining license for setting up a non-life insurance company along with overseas partner Sompo of Japan.

The Indian partners had already formed a company Universal Sompo General Insurance and had applied to RoC for registration.

The company would be registered in Mumbai.