Defying the current turmoil in the banking sector in the West, public sector Indian lender Punjab National Bank plans to expand its operation in the UK, beside eyeing a five-million-dollar profit from the country's operations.
Defying the current turmoil in the banking sector in the West, public sector Indian lender Punjab National Bank plans to expand its operation in the UK, beside eyeing a five-million-dollar profit from the country's operations.
"This year we will be making a profit of 4 to 5 million dollar from our UK operations," PNB Chairman and Managing Director K C Chakrabarty told PTI here last night.
The bank so far has three branches in the UK and it will open one in Birmingham next month. Over the next financial year, there are plans to open additional branches in Manchester, Wolverhampton and London, he said. Chakrabarty said: "Those who have cash and strength, this is the time to expand and we are capitalising on the current economic downturn."
The Punjab National Bank International is a subsidiary of the Punjab National Bank. With 4,600 branches in India and 38 million customers, PNB is expected to make a profit of 500 million dollars this year, he said. Chakrabarty launched the bank's Debit Card here yesterday.
The bank will not charge for withdrawals in the UK as well as all Maestro-enabled ATMs in India. In addition to the Debit Card service, the bank has commenced internet banking services to retail and corporate customers.
Answering a query on if the India's move to protect the domestic financial institutions, he said India's regulatory and monetary authorities had done a wonderful job in insulating banks from the turmoil outside. "They have not allowed any bubble to be created"
To mark the launch of the new services, the bank hosted a celebratory event at the Park Lane Hotel (Sheraton) in central London last night. British minister of state for welfare reform Tony McNulty was the chief guest and India's High Commissioner to the UK, S S Mukherjee, was the guest of honour.
Stephen Pound, MP, former Chairman of the Labour Friends of India appreciated the courage and vision of the bank to have decided to expand when other western banks were struggling to survive. The Bank will also open a representative office in Oslo in Norway on Friday.
"At present, we have a joint venture bank in Nepal and we plan to start a joint venture bank in Bhutan by April 14 this year," he said. The bank plans to launch online remittances shortly.
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