PNB will enter Australia shortly

State-owned Punjab National Bank said on Thursday it plans to expand its services to Australia, Canada and South Africa besides South Asian Association for Regional Cooperation (Saarc) countries. “We will shortly foray into Canada, Australia and South Africa depending on the size of the market,” an official of Punjab National Bank in the International Banking Division said. The bank will also launch its first branch in Hong Kong besides upgrading its office to a branch in Sanghai, he said. The bank is conducting market surveys in Australia and Canada to determine the number and size of the branches.

“We have to see what the market is like, whether we can open a branch, subsidiary or a representative office,” he said. For South Africa, he said, we are conducting market surveys and feasibility test. “The viability of the proposal is essential to judge the profitability.” He said the bank is also keenly looking at Saarc countries which include Pakistan, Nepal, Maldives, Bhutan, Sri Lanka and Bangladesh. Responding to a question on investment the official said that the amount of investment will depend on the regulatory capital requirement and economic capital requirement in
the selected countries.

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.