RBI delays PNB approval for starting joint venturePNB expected to launch its own credit card
Apnaloan.com Research Bureau
11 Apr 2008
Punjab National Bank (PNB) decided to run the credit card business on its own, as Reserve Bank of India (RBI) is delaying granting them (PNB) approval for starting joint venture with American International Group (AIG) and Venture Infotech Global.
As reported by The Economic Times, a senior official of PNB said "We have decided to start it as it does not require regulatory approval. Subsequently, when RBI approves the JV, we will hive off the credit card department as a separate subsidiary,"
PNB has announced that it has entered into a partnership with AIG and Infotech Global for credit card business. The bank is expected to launch its credit card business by October this year.
At present the bank has a co-branded card with HSBC. When PNB launches its own card, it will discontinue the tie-up with HSBC.
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