BoB ropes in IOB, Andhra Bank for Malaysia JV
04 June 2009
Three public sector lenders, Bank of Baroda (BOB), Indian Overseas Bank (IOB) and Andhra Bank, have joined hands to set up a joint venture banking subsidiary in Malaysia - India BIA Bank (Malaysia) Bhd.
''The three-public sector banks will invest Rs 405-crore to set up subsidiary in Malaysia. Bank of Baroda will invest 40 per cent, Indian Overseas Bank 35 per cent and Andhra Pradesh 25 per cent,'' Bank of Baroda chairman and managing director M D Mallya said.
''We have obtained necessary approval from the Reserve Bank of India for setting up the subsidiary in joint venture with other two banks and this has also been appraised to Bank Negara Malaysia. After completion of remaining formalities, Bank of Baroda w ill approach Bank Negara Malaysia for regulatory approvals to set up a banking company,'' Mallya said.
The subsidiary, which will initially target Indian corporates and ethnic Indian population, will cater to the banking needs of all sections of population and corporates in Malaysia.