Punjab National Bank (PNB) has invested Rs 72.82 crore in its Bhutan subsidiary Druk PNB Bank Ltd (DPNBL) via a rights issue. The investment was made on July 7, 2023, and has helped PNB retain its 51% stake in the subsidiary.
- The rights issue of DPNBL was at a premium of Rs 7 (face value of Rs 10) — Rs 17 per share.
- Druk PNB Bank Ltd was incorporated on December 31, 2008, with FDI participation.
- The investment by PNB is a significant development in the Indian banking sector and is expected to help Druk PNB Bank Ltd to expand its operations in Bhutan and the wider region.
- The investment also reflects the strong financial position of PNB and its commitment to supporting the growth of the Bhutanese economy.
- The investment by PNB in Druk PNB Bank Ltd is a strategic move that is expected to benefit both companies. PNB will gain a stronger foothold in the Bhutanese market, while Druk PNB Bank Ltd will benefit from the financial and technical expertise of PNB.
- The investment is also a vote of confidence in the Bhutanese economy and is expected to boost economic growth in the country.
Druk PNB Bank Ltd
- Druk PNB was incorporated under the Companies Act of the Kingdom of Bhutan 2000 in the year 2008, and licensed to operate as commercial bank by the Royal Monetary Authority of Bhutan under the Financial Institutions Act of Bhutan 1992. Druk PNB is listed with the Royal Securities Exchange of Bhutan Limited (RSEBL). Druk PNB has a paid up capital of Nu. 449.712 million as on 31st December 2014 and its shares held by Punjab National Bank, India (51%), Bhutanese promoters (19%) and general public (30%) respectively.
Druk PNB is the first FDI bank in Bhutan. The bank now provides a wide range of financial products & services. The main products are deposits, credits and trade finance along with clearing facility, remittances and safe deposits lockers. The Bank also offers other services like issuing of debit cards and alternate delivery channels like Internet banking and ATMs.
The Company today employs 139 staff with its Corporate Office based in Thimphu. Has its presence Thimphu, Phuntsholing, Wangdue, Gelephu, Paro and Trongsa. Druk PNB holds 09.23% equity share in FITI.
Keywords: Punjab National Bank, Druk PNB Bank Ltd, Bhutan, investment, rights issue, FDI, financial services, banking