PNB buys 64 per cent in JSC Dana Bank Kazakhstan for around $24 million

India's second largest state-owned bank after State Bank, Punjab National Bank (PNB), has acquired a majority 63.64 per cent stake in JSC Dana Bank Kazakhstan for 3.5 billion tenge (around Rs 106.8 crore / $23.765 million).

PNB acquired 35 million shares of 1,000 tenge each, at par, for 3.5 billion tenge, thereby also raising the capital of JSC Dana Bank to 5.5 billion tenge from the existing 2 billion tenge, PNB said in a filing with the Bombay Stock Exchange (BSE).

JSC Dana Bank has convened a general body meeting of shareholders, scheduled to be held in Almaty on 15 December 2010. The meeting is expected to approve the transaction.

With five branches across Kazkhstan, Dana Bank has a total business of around $60 million. The acquisition will help PNB expand its presence in the CIS countries.

Dana, which has three offices at Almaty and one each at Pavlador and Karganda, is setting up two branches at Astana and Taraz. The bank is also planning to open two more branches at Atrau and Akhtau in 2011.

PNB has been maintaining a representative office in Almaty since 1998.