Financial Daily from THE HINDU group of publications
Saturday, Feb 19, 2005
Financial Daily from THE HINDU group of publications Saturday, Feb 19, 2005 |
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Money & Banking
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Public Sector Banks Markets - Public Offer Deloitte to advise PNB on UK subsidiary — Bank's second public offer to open on March 7 Our Bureau
Mr S. S. Kohli (left), CMD, Punjab National Bank, with Mr K. C. Chakraborty, Executive Director, addressing a press conference in the Capital on Friday. - - Kamal Narang
New Delhi , Feb.18 PUNJAB National Bank, which is coming out with its second public offer shortly, is planning to float a subsidiary in the UK. Disclosing this at a press conference here today, the Chairman and Managing Director, PNB, Mr S.S. Kohli, said the bank had appointed a consultant to advise on its first overseas subsidiary. "We have appointed Deloitte as our consultants for the UK venture. Once we get their recommendation, we would examine it and take our proposal to the board," Mr Kohli said. The consultants are expected to give a preliminary report in two months. PNB would also consider converting its representative office in Kazakhstan to a branch office and would open a representative office in Dubai. It has also received permission to open an offshore office in Sri Lanka. Mr Kohli said that second public offer of the bank would be open for subscription from March 7 to 11. The offer of eight crore shares at a price band to be disclosed would bring down the Government holding in the bank from the current 80 per cent to around 57 per cent. He said that the price band for the book-built issue would be disclosed at least a day before the issue opens for subscription. The PNB share closed at Rs 422.64 on the Bombay Stock Exchange and Rs 422.45 on the National Stock Exchange on Friday. Of the eight crore shares on offer, the bank would reserve 10 per cent (80 lakh shares) for existing small shareholders and a similar amount for employees. Thus, the net offer to the public would be 6.4 crore shares. A total of 3 crore shares out of the public issue would be returned to the Government at the cut-off price arrived at after the book-building process. Mr Kohli said the bank's deposits grew by 17 per cent to Rs 95,922 crore till December 2004 while advances were up by 23.4 per cent to Rs 61,240 crore. The retail portfolio grew by 32 per cent to Rs 10,116 crore till the third quarter of 2004-05. "We expect our credit portfolio to grow by 20 per cent during the current fiscal and deposits by 16 per cent," Mr Kohli said. The bank's net NPA declined to 0.28 per cent till December 2004 compared with 2.2 per cent a year ago.
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