India International Bank — a venture of three public sector banks including Bank of Baroda (BoB), Indian Overseas Bank and Andhra Bank — will set up shop in Malaysia to cash in on business opportunities.
"An application has been filed with Malaysian regulator (Bank Negara Malaysia) for setting up a subsidiary in joint venture with Indian Overseas Bank and Andhra Bank," said N.S. Srinath, executive director, BoB.
"We see lot of opportunity in Malaysia as there are many Indian entities doing business."
BoB is aggressively expanding its network overseas. At the end of March 2010, the bank had 48 are overseas branches.
BoB will be the largest shareholder in the venture. The bank had to form joint venture with the other two banks, as regulatory provisions in Malaysia were not allowing it to open the branch.
"The bank is expected to be operational in two-three months," said Srinath.
The bank already has a representative office in Malaysia that will be merged in the India International Bank.