PNB to foray into investment services and factoring through new subsidiaries
07 September 2009
Public sector lender Punjab National Bank (PNB) is moving into factoring and investment services. The bank is planning to launch two new subsidiaries in order to tap new business areas. In addition to its investment-banking subsidiary PNB Investment Services Ltd it will float another subsidiary in the name of PNB Factoring to facilitate its foray into factoring business.
According to Ranjan Dhawan, PNB chief general manager (PNB Credit Card Venture Division and Overseas Operations), the bank had completed all formalities for launching its investment-banking arm in the next two months. He said the bank would launch the services with a corpus of Rs20 crore.
The bank has appointed Anil Ahuja to head its investment banking arm and the hiring process of more recruiting professionals for launching its investment-banking arm is also under way.
The investment-banking arm would cater to both domestic and international clients and also act as consultants in execution of capital market deals, issue management services and advising on potential takeovers of brands, businesses and assets.
The investment banking arm would also provide advice on corporate and capital structuring and restructuring services.
The bank has also planned a subsidiary for its factoring venture, in which the bank would invest about Rs100 crore. The move would also help the bank promote development of SMEs in the country.