Punjab National Bank May Scrap $24 Million Purchase of Kazakhstan’s Dana

Sep 23. Bloomberg

By Anto Antony

Punjab National Bank May Scrap $24 Million Purchase of Kazakhstan's DanaPunjab National Bank, India’s second-largest government-controlled lender, may drop its proposed $24 million acquisition of a controlling stake in Kazakhstan’s JSC Dana Bank.

The Indian lender hasn’t completed buying the 63.6 percent holding in the Kazakh lender because of problems that arose during the due diligence process, Punjab National Bank Chairman and Managing Director K.R. Kamath said in an interview in New Delhi yesterday.

“We have done nothing other than starting the due diligence, and will walk away if things are not as we earlier perceived,” Kamath said, declining to elaborate. The New Delhi- based lender in October said its board approved plans for the acquisition.

The 115-year-old Indian bank, which has foreign branches in Hong Kong, Kabul and Dubai, as well as a subsidiary in the U.K., is expanding in more overseas markets. It plans to open a subsidiary in Canada and upgrade its representative office in Norway into a full-fledged branch, the company said in July.

Executives at Dana Bank couldn’t immediately be reached for comment at the Almaty-based company’s offices.