Public Sector lending institution, Punjab National Bank (PNB) is planning to launch two new subsidiaries in order to tap new business areas. The bank has plans to venture into investment services, via its investment-banking subsidiary PNB Investment Services Limited, while another subsidiary in the name of PNB Factoring would be launched to facilitate its foray into factoring business.
PNB chief general manager (PNB Credit Card Venture Division and Overseas Operations) Ranjan Dhawan told Economic Times that the bank has completed all the formalities for launching its investment-banking arm in next two months. “We will launch the services with a corpus of Rs 20 crore.
The bank has appointed Anil Ahuja to head its investment banking arm and is in the process of hiring 30 more professionals to implement its business plans.
The investment banking arm is looking to cater both domestic and international clients, apart from acting as consultants in execution of capital market deals, issue management services and advising on potential takeovers of brands, businesses and assets. Also in the business plan is providing advice for corporate and capital structuring and restructuring services.
The bank has also unveiled its plan to venture into the factoring business by launching a subsidiary, wherein the bank would invest about Rs 100 crore. This is also a part of banks ploy to promote the SMEs in the country which, has immense promise.
The factoring business is slated to start operations by next year with an aim to provide instant cash facility to the SMEs. State Bank of India (SBI) and Global Trade Finance are major players in the factoring segment.
The PNB is under a major expansion mode, in the recent years, it has opened branches internationally in Hong Kong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and Norway, apart from a JV with Everest bank in Kathmandu.
PNB has a customer base of 38 million in India. The bank reported a net profit Rs 3091 crore in the financial year ending in March 2009.
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