Kazakhstan: Allahabad Bank-PNB for JV subsidiary

Kolkata, Jul 8: Allahabad Bank and Punjab National Bank (PNB) are in the process of setting up a joint venture subsidiary arm at Kazakhstan for offering banking services in the country.

''PNB will hold 60 per cent stake while Allahabad Bank will hold 40 per cent stake in the subsidiary,'' Allahabad Bank chairman and managing director O N Singh said.

The total capital required in the venture will be around million US, Singh said in the sidelines of the Bank's annual general meeting here today.

''We have got the approval from the Reserve Bank of India (RBI) and the authorities in Kazakhstan for setting up the subsidiary,'' he said.

The joint venture subsidiary arm would also examine acquisition of a bank in Kazakhstan for starting operations in the country, Singh said.

Meanwhile, the consortium formed by Allahabad Bank, Indian Overseas Bank, Karnataka Bank Ltd and Dabur Ltd for entering into general insurance business is awaiting for consultant firm Ernst and Young's report about troubled Japanese partner Sompo, which had been pulled up by the regulator in that country.

''We have asked for a regulatory clearance from Sompo,'' he said.

Singh said AllBank Finance Ltd, the wholly owned subsidiary of Allahabad Bank, has obtained the merchant banking and underwriting registration from SEBI and will be functional in 3-4 months.

He said the Bank, with 13.27 per cent capital adequacy ratio, will implement core banking solution in all its branches in three years time.

The bank is targetting a business of Rs 94,500 crore in the current fiscal from Rs 79,000 crore in the last fiscal.

UNI