Online BusinessPNB Dubai branch, Bhutan venture to operate from next month
The country"s second largest public sector lender, Punjab National Bank, today said its Bhutan joint venture and Dubai branch would start operating from next month.
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"We are doing a soft launch of the Dubai branch. It will be in operation from January, 2010," PNB Chairman and Manging Director K R Kamath told PTI. The branch would be based at the Dubai International Financial Centre (DIFC).
Also, Druk PNB Ltd, the joint venture in Bhutan, would be functional from next month, he said.
The JV is having a paid-up capital of Rs 30 crore. PNB has signed up a memorandum of understanding with a local partner in Bhutan.
Kamath said PNB is in the process of upgrading its Shanghai (China) representative office to a branch.
The bank is also seeking approval for setting up a subsidiary in Vancouver, Canada. It has received the Reserve Bank"s approval.
"We recently made a presentation to monetary authorities of Canada and they are positive. The process of submitting a business case is on. The whole process of starting operations is likely to take one year," he said.
On the capital raising plan, Kamath said, PNB could raise up to Rs 7,000 crore from bonds to fund its business growth.
"We have headroom of raising Rs 7,000 crore from Tier II bonds and funds would be raised depending on the requirement," he said.
Asked about plans to raise funds in the near future, Kamath said, "definitely rate of interest is conducive now. If we foresee rate of interest hardening then we can raise some capital."
"The bank has sufficient headroom so it"s a question of specific number and timing," he said.
Last month, the bank raised Rs 700 crore from bonds to fund credit growth.
The bank raised Rs 500 crore by issue of upper tier-II bonds and the remaining Rs 200 crore through issue of tier-I perpetual bonds.