The Hindu : Business : PNB eyeing footprint in Kazakhstan

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Saturday, Oct 18, 2008
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PNB eyeing footprint in Kazakhstan

Special Correspondent

K. C. Chakrabarty

BANGALORE: Punjab National Bank is looking at acquiring a local bank in Kazakhstan as part of its overseas expansion plans, Chairman and Managing Director, K. C. Chakrabarty, told reporters here on Friday. “The deal size will be $35 million and negotiations are on. We want a presence in that country because it is among the first India is looking at for material after the nuclear deal with U.S. was finalised. Business prospects there will be good,” he said. The bank already has subsidiaries or offices in the U.K., Dubai, Shanghai and Hong Kong.

“Our Punjab origin was the main reason we wanted a subsidiary in Vancouver, Canada. There are a large number of persons of Punjab origin settled there,” Mr. Chakrabarty said. Another reason for venturing overseas was that the bank would gain valuable experience to become part of a global financial scene. Indian businesses which set up shop overseas too liked the comfort of dealing with an Indian bank in unfamiliar territory.

On the domestic baking scene, he said the lowering of cash reserve ratio (CRR) had improved the bank’s liquidity by Rs. 4,200 crore. Lending to corporates had not actually stopped, though the rates were higher. “Despite higher rates, there are takers but we do not want to squeeze them. On the whole, we expect to have a net interest margin of 3.5-4 per cent by the end of the year, though 5.8 per cent would be ideal,” he said.

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