BoB, IoB, Andhra Bank JV gets nod for Malaysian subsidiary
Malaysian Central Bank today awarded license to three leading state-run Indian banks--Bank of Baroda, Indian Overseas Bank and Andhra Bank to set up a joint venture commercial banking subsidiary in that country.business Updated: Apr 16, 2010 21:36 IST
Malaysian Central Bank today awarded license to three leading state-run Indian banks--Bank of Baroda, Indian Overseas Bank and Andhra Bank to set up a joint venture commercial banking subsidiary in that country.
Bank of Baroda will be the majority stakeholder in the subsidiary with 40 per cent shareholding followed by Indian Overseas Bank (35 per cent) and Andhra Bank (25 per cent).
"The new subsidiary will be floated by the three banks. The three banks in the consortium will now discuss the future course of action to take its operations ahead," Indian Overseas Bank's Executive Director, Y L Madan told PTI.
After securing the RBI permission, the three state-run banks had applied to the Malaysian banking regulator nearly 7-8 month ago for the necessary approvals, Madan said.
The new entity is understood to be operating in the segments like retail banking, trade finance and lending to Indian companies to support their business plans in Malaysia.
Malaysian Central Bank--Bank Negara Malaysia--said that the issuance of this licence is not part of the new commercial banking licences under the liberalisation initiative but is part of an engagement between India and Malaysia.