PNB sees synergy in acquisition of IFCI

Punjab National Bank (PNB), one of the bidders eyeing 26 per cent equity stake in IFCI, is betting on high business synergy and a similar client base as key factors with the help of which it can revive the ailing financial institution.
"About 80 per cent of our assets are common, including NPAs (non-performing assets). We have a natural synergy with IFCI as both of us are north-based. Hence, there is a similarity in the clientele, including defaulters," PNB chairman and managing director K.C. Chakrabarty told NewsWire18.
PNB, the only state-run bidder in the race for acquiring the stake in IFCI, has formed a consortium with private equity firm JC Flowers and Co. and Shinsei Bank of Japan. The government had invited expression of interest for sale of 26 per cent stake in IFCI, valued at around Rs 1,300 crores, from strategic investors. The deadline for submission of EoIs expired on Friday.