The Hindu Business Line : PNB Gilts revamp under way

The bank, which holds about 74 per cent in PNB Gilts, proposes to assist it in achieving the desired numbers, indicated Mr S.S. Kohli, CMD of PNB, adding that the subsidiary outfit had suffered for a certain period because of adverse conditions prevailing in the market.

"We hope to see it emerge a stronger entity. There is significant scope for a primary dealer to do well in the Indian market," he said. PNB Gilts' post-tax profit dipped marginally to Rs 92 crore in fiscal 2003 from Rs 112.5 crore in 2002. It moved up again to Rs 106.9 crore in the following year.

The company, it may be mentioned, could not meet all the projections recorded in its IPO offer document during the first half of fiscal 2001, leading to a loss of roughly Rs 39 crore. However, it did register a pre-tax profit of Rs 119 crore in the second half of the same year.

PNB Gilts, the bank noted, has been an active PD — an entity mandated by the RBI to conduct market-making in government securities. Established in 1996, the company went public about five years ago. As of now, it ranks with PNB's other subsidiaries — PNB Housing Finance and PNB Asset Management.

PNB for pension venture with Principal

PUNJAB National Bank is keen on partnering with the Principal Financial group of the US for starting a pension fund management business, according to its Chairman, Mr S. S. Kohli.

The US outfit has joined hands with PNB (and Vijaya Bank) for mutual funds.

Pensions would soon emerge a critical venture, especially with the regulatory authority recently set up by the Government, said Mr Kohli. A number of parties are said to be interested in the pensions business.

PNB has an MoU with the overseas group for Principal-PNB Pensions and Life Insurance Co Ltd, an outfit that also has Vijaya Bank and the Kolkata-based Berger Paints as partners. The latter two will hold 12 per cent and 25 per cent stake respectively, while Principal will have a 26 per cent stake in the proposed company. Mr Kohli said that Berger Paints has been roped in as a strategic partner.

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