(Rptg yesterday's di 15)

New Delhi, Mar 12 (UNI) Indian financial institutions are the latest to board the 'train to Pakistan', with the Punjab National Bank throwing the gauntlet for opening a branch or two in the neighbouring country.

PNB Chairman and Managing Director S C Gupta today announced that the bank has filed an application with the Indian regulator (RBI) for setting up a branch in Pakistan, which could be in Lahore or Karachi or both.

Mr Gupta said the plans to go to Pakistan emanate from the desire to take advantage of the peace process under way and in line with the bank's overseas expansion ambitions.

Other banks are also in the fray, including the State Bank of India, for setting up shop in Pakistan.

''We have applied to the RBI for opening up a branch in Pakistan, which could be in Lahore or Karachi or both. Before the partition of the country, PNB had 23 branches in what is now a territory of Pakistan,'' Mr Gupta told newspersons here.

Mr Gupta said many in Pakistan still cherish their old relation with PNB -- what is now the second biggest Bank in India, after State Bank of India.

The movement of peace with Pakistan first resulted in greater people to people contact with two trains and two buses plying between the two nations.

There is also talk about expanding trade between the two countries and opening of the Wagah border was a step in this direction.

But there is growing restlessness among financial intermediaries of India and Pakistan to transact business. For instance, some companies in Pakistan would like to be listed on the Indian stock exchanges and vice versa.

Similarly, Indian and Pakistani insurance companies want to do business in each other's territory.

Mr Gupta, however, admitted that so far the bank had not got a response from the RBI.

He said if given permission, the bank would be able to make a mark in that country, by being able to garner significant amount of deposits and in its lending operations.

The PNB Chief said the bank had sent a survey team to the neighbouring country, which recommended that there was considerable unutilised potential which could be tapped. ''There is plenty of goodwill among the people of Pakistan for India and the PNB,'' he said.

Mr Gupta said the peace process has sparked hope among financial institutions to transact business with Pakistan and as it takes deeper roots, this dimesion of business is likely to grow.

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