Indian bank buys controlling stake in Kazakhstan’s Dana Bank
December 14. Central Asia Newswire
India’s second largest state-run lender Punjab National Bank (PNB) said Monday it has purchased a 63.64 percent share in Kazakhstan’s Dana Bank for nearly $24 million.
“PNB has acquired 35 million shares of 1,000 Kazakhstan tenge ($6.78) each at par for 3.5 billion Kazakhstan tenge ($23.76 million),” the Calcuttanews.net news agency Monday quoted PNB as saying in a regulatory filing to the Bombay Stock Exchange (BSE).
JSC Dana Bank currently has three operational branches in Kazakhstan giving it a business size of $60 million with plans to open at least another four branches.
The Kazakh lender will shortly open two new branches in the capital city Astana and Taraz to boost its current three in second city Almaty, Karaganda and Pavlodar. The company aims to open branches in Atrau and Akhtau next year, the Press Trust of India (PTI) news agency reported on Monday.
The Indian bank has been present in the Kazakh market since 1998 through a representative office in the country’s business capital Almaty.
PNB’s strategy is to penetrate the Commonwealth of Independent States (CIS) by using Astana-based Dana Bank as a foothold.
PNB is operating in eight countries, while its majority purchase of Dana is its third overseas joint venture buy after Everest Bank in Nepal and Druk Bank in Bhutan. It is also interested in opening a subsidiary in Vancouver, Canada.