PNB to buy NCDEX, NMCE pie

.Punjab National Bank (PNB) has decided to pick up eight per cent stake in the National Commodity and Derivatives Exchange (NCDEX) Ltd.

The bank will also pick up stake in the National Multi-Commodity Exchange of India Ltd (NMCE).

PNB will invest Rs 1.78 crore in the equity of NCDEX and Rs 1 crore in the equity of NMCE.

NCDEX, jointly promoted by ICICI Bank, the National Stock Exchange (NSE), Life Insurance Corporation of India (LIC) and National Bank for Agriculture and Rural Development has a paid up capital of Rs 20 crore.

Confirming the development, Narendra Gupta, deputy managing director, NCDEX said that "The equity stake will be issued at par."

Earlier, credit rating agency Crisil had picked up a stake in NCDEX. NMCE jointly promoted by has an authorised capital of Rs 10 crore.

Kailash Gupta, managing director of NMCE, confirmed the development and said that, "We had been in talks with PNB for some time now and the decision was awaiting RBI clearance."

In another decision PNB has also approved investments in the equity investment of Rs 2.50 million in the equity of Asset Reconstruction Company (India) Ltd.

And investment to the extent of Rs 1 crore not exceeding 20 per cent of the proposed paid up equity of SIDBI Technology Services Ltd, a 'Technology Bank' promoted by SIDBI following the necessary RBI approvals.

The PNB board also recently accorded in-principle approval for the taking over of IFCI, subject to due diligence and other conditions as may be stipulated by the board besides obtaining of requisite approvals connected with the NCDEX that kicked off futures trading on December 16, 2003, currently clocks an average daily turnover of around Rs 20-25 crore in 10 commodities.