PNB completes formalities to buy 30% in Metlife

Punjab National Bank, the country's second-largest public lender, today said it had completed formalities to acquire 30% stake in MetLife and launch of insurance policies is slated to begin on January 14 next year across the country, pending regulatory approval.

"We have completed formalities to acquire 30% stake in Metlife. The launch of insurance business is expected on January 14, 2012, and we expect Rs 100 crore business by selling Metlife life insurance polices in one year," PNB Chairman and Managing Director KR Kamath said.

Asked why Q2 results had not been released, he said it was due to Diwali. "We are right on track and will release it on the first week of November," he said.

Kamath said PNB had fixed an aggregate business target of Rs 6.50 lakh crore for this fiscal. Aggregate business had crossed Rs 5.99 lakh crore by September 2011. It had deposits of Rs 3.40 lakh crore and advances of Rs 3.5 lakh crore.

The bank would increase headcount recruiting 10,000 staff this year, he said.

Kamath said PNB, with 5,400 branches, planned to open 200 more before this fiscal year-end, including 10 in Tamil Nadu.

The bank which has 10 branches abroad, had applied for licences to start branches in Vancouver, Maldives, Dhaka and Brazil. Representative Branches in Shangai and Oslo would soon be upgraded to full fledged branches soon, he said.

Kamath said PNB was growing at 22% year on year. Of the total business, 4% was from overseas operation. "It is mostly in domestic segment that it is growing steadily. International business remained at 4%, but the quantum had increased," he said.

The Capital Adequacy Ratio of 12.5%, against the 9% norms of the Reserve Bank of India.

Networth has enhanced to Rs 21,508 crore this year from Rs 17,723 crore last year, he added.

Source: Business Standard