PNB chief says Dana Bank expected to turnaround in a year

Jan 17. The Economic Times

PNB chief says Dana Bank expected to turnaround in a yearAfter successfully acquiring Dana Bank last month, Punjab National Bank (PNB) on Monday said its Kazakhstan-based joint-venture is expected to become profitable in a year.

“I think in a year we should be able to do it because there are lot of Indian companies operating in Kazakistan. I am sure we would be able to turnaround in one year,” PNB Chairman and Managing Director K R Kamath said at the sidelines of a PHD Chamber event here.

Kazakhstan, the largest economy in Central Asia, has strategic importance for India due to growing economic cooperation between two countries at the apex level.

PNB last month picked up majority 63.6 per cent stake in JSC Dana Bank for about USD 23.7 million (about Rs 104 crore). Dana bank has five branches with a total business size of USD 60 million (around Rs 276 crore).

Out of them, three at Almaty, Pavlador and Karganda are operational and the remaining two at Astana & Taraz are to be operationalised soon. There are plans to open two more branches at Atrau & Akhtau in the year 2011, according to officials.

The bank, which is present in eight countries, is planning to open few more offices overseas, including at Shanghai. It is also looking at setting up a subsidiary in Vancouver, Canada. This would be bank’s third overseas JV after Everest Bank Ltd, Nepal and Druk PNB Bank Ltd in Bhutan.