PNB to open new branches abroad

Punjab National Bank (PNB) will shortly be converting its representative office in London into a subsidiary shortly, S C Gupta, chairman and managing director, PNB said here today.

Speaking on the sidelines of the Bankers' Conference (Bancon 2005), organised by the UCO Bank, Gupta informed that application has been filed with the Reserve Bank of India for approval. "Conversion of the representative office into a subsidiary would help the bank's activity significantly in London," he added.

The bank has also filed an application for opening up branches in Singapore, Honk Kong and Canada. Speaking on inorganic growth, Gupta informed that PNB has been in the look out for both domestic and overseas acquisition.

"We are on the look out for acquisition opportunities. This would be very important for strengthening our position in the globally competitive scenario," he added.

He further noted that the bank would be looking for all sort of acquisition propositions, be it an acquisition in partnership with another bank, complete take over by PNB or collaboration with other banks in South East Asia. PNB is working to find out the right kind of synergy, he added.

Reiterating the comments made by the finance minister early this morning, Gupta said, "Consolidation is an unavoidable proposition if Indian banks has to grow. Fortunately we have been able to educate our unions about its positive implications and there has been growing agreement among unions at individual banks level.Sooner or later, a national consensus is expected," he added.

In response to a question, Gupta said the Central government would not allow any of the four sponsors of UTI AMC to sale its stake in the outfit. The government is now transferring its stake to four sponsors SBI, LIC, Bank of Baroda and PNB at a valuation of Rs 1237 crore.

Gupta said the sponsors would not have an exit option for a certain period. "Later on if anybody wants to sell its stake then it has to take approval from the government," he added.