India is likely to urge Kazakhstan to relax its qualification and visa rules for the banking sector that is weighing heavy on Punjab National Bank that started operations in the country in 2011.

Finance Minister P Chidambaram, who is scheduled to visit the country later this month, may also seek help from Kazakh officials for recovery of dues that PNB inherited when it acquired 91 per cent stake in local Dana Bank in 2011.

“PNB is finding it difficult to run its branches in Kazakhstan because of archaic banking laws, sizeable irrecoverable loans and problems related to work permits and business visas for India-based officers,” a Government official pointed out.

PNB chose Kazakhstan to establish its presence because of the growing economic ties between the two economies, especially in the energy sector.

Slow visa processing Three years down the line, not only is the bank suffering because of slow processing of visas for its officials, what it finds especially objectionable is that even senior officials of PNB are made to appear for a qualifying written test conducted by local authorities before they can be posted in the Kazakh branches.

“PNB nominated directors of the board and top executives of the bank have vast experience in banking. We are going to demand that they be exempt from the regulation of appearing in a test before they can work in the Kazakh branches,” the official said.

Recovery of dues The bank is also facing problems with recovering “substantial’’ dues that it inherited while taking over Dana Bank. “Despite obtaining court orders in PNB’s favour, the bank is not able to execute and recover the dues due to lack of support from related Government departments,” the official said.

India wants that long term visas and work permits be given to the banking sector, in line with the existing facility for the petroleum sector, for smooth movement of officials deputed for a limited period.

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