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 CHENNAI:
Allahabad Bank and Punjab National Bank have
re-drawn their joint strategy for making a foray into
Kazakhstan.
The two are exploring the possibility of acquiring a local
bank to gain a toehold in that country. Earlier, the two had
announced the setting up of a joint venture to start banking
operations in Kazakhstan.
Addressing a press conference here on Friday, O. N. Singh,
Chairman and Managing Director of Allahabad Bank, said, "We
have kept it (the joint venture) on hold.'' He went on to add
that, ``both will join together and acquire a bank.'' The
differential norms relating to capital requirements and
recognition of global capital adequacy adopted by various
countries had resulted in the change of thinking vis-à-vis
the Kazakhstan foray.
Mr. Singh said the bank had sought the views of Ernst and
Young on entering the insurance field through its subsidiary,
Allbank Finance Ltd. He expected Ernst and Young to come out
its recommendations soon. The subsidiary, he said, had
surrendered its leasing licence to the Reserve Bank of India.
It had now decided to focus on merchant banking, he added.
The CMD informed presspersons that TCS, Infosys and i-flex
had put in their bids for offering core-banking solution to
link 400 branches.
CHENNAI: Allahabad Bank is planning to enter into the
insurance sector and is all set to open a branch in Hong
Kong.
According to O N Singh, chairman and managing director of the
bank, a decision has been taken in this respect and that
‘‘within a month we will be deciding whether we should tap
the life insurance or general insurance sector.’’
The bank is also in discussion with some other Indian banks
for its insurance foray. However, Singh did not disclose what
is the nature of the discussion and whether the bank is
planning to tie up with any of the banks for its proposed
insurance venture.
After finalising the details of the proposed venture, Singh
said,‘‘we will tie up with a foreign insurance company,’’
adding that, ‘‘the new venture will be ready within six
months.’’
The bank is also venturing into overseas market by setting up
a branch office in Hong Kong and a representative office in
China. ‘‘We have received all clearances from the Indian and
Hong Kong authorities. The Hong Kong branch will be ready in
three months,’’ Singh informed.The bank which is very ‘strong
in North, East and central part of India’ is also planning to
expand its operations in South.
‘‘We are planning to open five branches in Tamil Nadu,’’
Singh said. The new branches will come up in Chennai, Vellore,
Karaikudi and Tirupur including Mogappair branch, which has
already been opened.
The bank has recently joined the National Financial Switch (NFS),
a shared ATM network.
Chennai: Allahabad Bank and Punjab National Bank, which had
planned to set up a joint venture in Kazakhstan, have now
given up the idea. Instead, the two public sector banks
intend to jointly buy a bank in that country, said O.N.
Singh, Chairman and Managing Director, Allahabad Bank. Today
in Sify Finance
A decision on the acquisition could be made in three months,
he added.
Kazakhstan is one of the areas where the bank is planning
overseas ventures, the others being a branch in Hong Kong and
a representative office in China.
Speaking to newspersons, Singh said that Allahabad Bank had
decided to enter the insurance sector through its subsidiary,
Allbank Finance Ltd.
The bank had engaged Ernst & Young (E&Y) to advise it on
which insurance segment to enter - life or non-life - and
with which partners, he added.
E&Y has also been asked to develop a business model for the
bank's merchant banking operations, which it intends to start
shortly, also through Allbank Finance Ltd.
Meanwhile, the Rs 300-crore IT initiative of the bank is well
under way and a vendor for the core banking software would be
selected shortly, Singh said.
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