PNB eyes stake in Metrokombank

Part of PNB's expansion overseas includes tapping Kazakhastan market.

India's Punjab National Bank is in the process of picking up a stake in a small Kazak bank, Metrokombank.

PNB has been looking for acquisition in the oil-rich Central Asian state. Sources said the talks are at a very preliminary stage as several things need to be looked into, including regulatory approval.

The minimum capital requirement for opening a bank in the country is high. The current volume of trade between India and Kazakhastan also does not warrant this kind of investment. Therefore, buying stake in a small bank is a viable option, the sources said.

PNB currently has a representative office in Almaty. The bank, which is present in eight countries, is planning to open few overseas offices, including a branch each in Shanghai, Dubai and some place in Norway.

It is also looking to set up a subsidiary in Vancouver, Canada, and a joint-venture in Bhutan.