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| IOB to enter Malaysia with BoB, Andhra Bank |
| BS Reporter / Chennai Jan 30, 2009, 17:20 IST |
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Chennai-based public sector bank Indian Overseas Bank (IOB) to join hands with Bank of Baroda and Andhra Bank to start operations in Malyasia. The new joint venture is expected to commence operations by end of 2009.
S A Bhatt, chairman and managing director, IOB said that as part of bank's overseas expansion plan, the bank wanted to enter Malaysia. But as per the Malaysian government norms, a bank should have a minimum capital of $100 million. For any individual bank this would be a larger amount. So it was decided to partner with other banks, which are looking at starting operations in Malaysia.
In the new joint venture IOB will have 30 per cent stake while Bank of Baroda and Andhra Bank will have 40 and 30 per cent respectively, said Bhatt. The bank is also planning to open branches in New Zealand, while it is putting its plan on hold to commence operations in Australia and US.
Bhatt said during the third quarter operating profit from the overseas branches during the quarter ended December 31, 2008 for the bank was Rs 53 crore as compared to Rs 34 crore, a year ago.
He noted deposits from overseas operations increased to Rs 3,590 crore as compared to Rs 2,700 crore, while advances increased to Rs 5,225 crore from Rs 3,517 crore, a year ago.
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