Punjab National Bank is set to become the first Indian bank to open a branch in the war-ravaged Afghanistan.
According to sources, PNB has received approval from the Reserve Bank of India to set up a branch. The decision was taken in view of the fact that democracy is being restored in Afghanistan.
Further, Everest Bank of Nepal, a joint venture of PNB, has sought RBI nod to set up operations in India. The bank has a deposit base of Rs 700 crore (Rs 7 billion) and advances of around Rs 500 crore (Rs 5 billion).
Everest Bank was set up to offer banking services to various sections of society in the Kingdom of Nepal and contribute to the economic development of the country.
The Nepalese promoters hold 60 per cent of the equity, PNB 24 per cent and public 36 per cent.
Meanwhile, while some foreign banks find India lucrative, others find the competition too hot to handle.
Overseas Chinese Banking Corporation, a Singapore-based bank, is in the process of winding up its operations in India following the policy decision of the management globally.
This becomes the sixth foreign bank in India to wind up its operations, thus bringing down the number of foreign banks in India from 40 to 35.
Over one year, Commerzbank, Siam Commercial Bank, Dresdner Bank, KBC bank and Toronto Dominion Bank have exited India.
