Public sector lender Punjab National Bank (PNB) has received nod from the board of directors of the company to acquire a majority stake in Dana Bank based in Kazakhstan. PNB will buy around 67% stake and the decision is pending regulatory approval, said the company to the stock exchange.
The bank did not divulge any further details particularly the value of the deal. Reports, however, suggest that the bank would be paying roughly $50-60 million for the stake.
PNB provides banking services in India and internationally. In September this year, it initiated talks with Metrokombank, another lender in Kazakhstan. The development of the talks is not known.
The bank is in an expansion spree in the recent years. Apart from inorganic growth, it has opened its own branches internationally in Hong Kong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway, and has entered into a JV with Everest bank in Kathmandu.
PNB has a customer base of 38 million in India. It has posted a net profit of Rs 3,090.8 crore in FY 2008-09 against Rs 2,048.7 crore a year ago.