PNB plans branches in US, Canada, UK

Our Banking Bureau

Chennai, Aug 24: PUNJAB National Bank (PNB) is planning to set up full-fledged overseas branches in the US, Canada and Britain. The Delhi-based bank has already approached the Reserve Bank of India (RBI) for necessary clearances and is expecting the approvals latest by September.

Mr SS Kohli, chairman and managing director said, to begin with, PNB has sought the permission of the RBI to open three overseas branches. "The RBI is currently considering the proposal and a decision is expected within the next couple of weeks," he said. The opening of overseas branches is part of the PNB’s plans to expand its network both within and outside the country, he added.

PNB chairman said the bank would be coming out with an IPO (initial public offer) to mop up Rs 320 crore and is waiting to update its accounts to the international standard, US GAAP.

PNB has already obtained necessary clearances from the RBI and the Securities and Exchange Board of India (Sebi) for going public. "We may, however, review the IPO plan after our accounting standards conforms with US GAAP," he said adding "the bank has roped in an international agency to update its accounting standards".

PNB, during the current financial year, would focus more on housing finance, retail, consumer loans, infrastructure and educational loans. The bank has already tied up with several leading institutions across the country for expanding its reach in the educational loan segment. Over the past two months, the bank has disbursed about 2,000 educational loans aggregating Rs 35 crore.

In the case of infrastructure lending, Mr KN Prithviraj, general manager of the bank said, it would focus more on road and power sectors. PNB has been extending lines of credit to electricity boards in Tamil Nadu, Andhra Pradesh and Karnataka. "We are also actively considering to increase our exposure to the Visag Port. However, the line of credit is yet to be finalised," he said.

PNB is looking at an overall business of about Rs 100,000 in the current financial year. PNB would also open 200 ATMs across the country by the end of this financial year.