Date:25/07/2006 URL: http://www.thehindubusinessline.com/2006/07/25/stories/2006072503580600.htm

PNB ropes in E&Y as consultant for cards biz

Our Bureau

New Delhi , July 24

Punjab National Bank has roped in Ernst & Young (E&Y) as its consultant for its proposed foray into credit card business. Ernst & Young will, in the next six months, formulate a business plan for PNB's credit card business and also help the bank in identifying a joint venture partner for the card business.

The PNB Executive Director, Mr K Raghuraman, said that the bank had decided to set up a joint venture subsidiary that would exclusively deal with all aspects of credit card business. The subsidiary would be set up after obtaining requisite regulatory approval of the RBI.

Currently, PNB has a co-branding tie-up with HSBC in which the latter is the card issuer and plays the dominant role. Indications are that PNB would withdraw from the co-branding tie-up with HSBC as soon as the new joint venture company takes off.