"They were not performing at all, so we have decided to sever all ties with them," PNB Chairman and Managing Director K C Chakrabarty said today. Both the entities are currently negotiating the exit price.
"We are negotiating the exit price, which will be at par with the shareholding. Hopefully, it will be settled soon," Chakrabarty said. PNB Principal AMC is a joint venture between the Principal Group, PNB, Vijaya Bank and Berger Paints.
Under the JV, the Delhi-headquartered bank holds a 30 per cent stake, the Principal Group has a 26 per cent shareholding, Berger Paints 25 per cent and the remaining 19 per cent is with Vijaya Bank.
The second largest public sector bank is set to start its credit card business by October.
"We have roped in Visa as the facilitating partner. Initially, it will be available for the existing customers of the bank and in the first year, we are targeting 1-2 lakh cards," he told Business Standard during a visit to Chakla, around 60 km from Kolkata.
Also Read
The visit was a part of the spot assessment of the implementation of the debt waiver scheme, announced in the Union Budget 2008-09. For the bank, the total outstanding farm loan is estimated at around Rs 18,000 crore.
To up PLR by 50 bps
Punjab National Bank (PNB) has decided to hike the prime lending rates (PLR), by 50 basis points (bps). A final call regarding this would be taken by the end of the month at the bank's asset and liability committee (Alco) meeting.
"If the present condition persists, we will increase the PLR by around 50 basis points," said PNB Chairman and Managing Director K C Chakrabarty.
The CMD also said the bank would act similarly for the deposit rates as well.
"Currently, with the inflation rate of 11.05 per cent, the real interest rate has become negative. So we are left with no choice, but to hike the deposits rates," he added.