PNB plans big buyout

Banks with business size of over Rs 25,000 cr - Rs 30,000 cr in the radar.

Punjab National Bank (PNB) is working on acquiring a strong bank to propel its growth.

"We are working on consolidation. In terms of size we are looking at banks with business size of over Rs 25,000-30,000 crore," S C Gupta, chairman, said. The earlier proposal to merge IFCI with PNB has been put on the back burner.

Gupta said PNB was keen that their should be synergy in terms of employee rationalisation and technology. "We would need more and more capital and the acquisition should not be a drain on bank's resources," Gupta added. He did not specify anytime frame for the acquisition.

On being asked if there was a branch network size that the bank was looking for, Gupta said," We are not averse to bank with a branch size of 200-250."

Earlier today, Chidambaram asked the management of PNB to urge its employees that consolidation would be good for the bank.

"If anybody, it is employees of State Bank of India, who should be worried as PNB can give SBI a run for its money if it consolidates," Chidambaram said speaking at PNB's achievement of bringing 2,000 branches under core banking solution.