Kolkata, Aug 10 (IANS) State-run Central Bank of India is planning to form a joint venture with the Punjab National Bank (PNB) or set up a wholly-owned subsidiary to enter Mozambique by the end of this fiscal.

We have got the mandate from the government of India and are now exploring the best possible options with PNB to enter Mozambique. There may a 50:50 JV with PNB, or we may go of our own with a wholly-owned subsidiary, Central Bank of India chairman and managing director (CMD) M.V. Tanksale told media persons here.

We are eager to close this within FY13, Tanksale said at a banking conclave organised by FICCI Friday.

The Mumbai-based bank already has presence in Africa as it holds 20 percent stake in the Indo Zambia Bank. It will open a representative office in Kenya in the next three months.

Tanksale said the bank would need around Rs.7 billion (Rs.700 crore) capital from the central government as it required a total of about Rs.12 billion (Rs.1,200 crore) to maintain credit growth of 20 percent in the current financial year.

We will need Rs.1,200 crore worth of capital. We will be requesting the government to infuse Rs.700 crore and the rest will be by way of internal accruals. We also have headroom in Tier-II for raising capital, he said.