AllBank's Kazakh JV with PNB on ice

Allahabad Bank's plans for setting up 40:60 joint venture subsidiary with the Punjab National Bank (PNB) for starting banking operations in Kazakhstan has been put on hold for now.

PNB, the majority stakeholder in the proposed venture, is not ready for the project at present.

Allahabad Bank chairman and managing director A C Mahajan said PNB chairman and managing director S C Gupta had informed that more time was required by the bank to decide on the project.

Since PNB has presence in Kazakhstan, it would be difficult for Allahabad Bank to enter the country without the tie-up with PNB, Mahajan said.

The newly incorporated non-life insurance company Universal Sompo General Insurance Company, in which Allahabad Bank holds 30 per cent stake, would make an application before Irda in February to start operations.

The board held its first meeting recently under the chairmanship of former Allahabad Bank chairman O N Singh.

The bank is also looking at concentrating on lending to businesses which were expanding operations in the country.