BoB's Malaysian arm to go on floor in few months

Unfazed by the global economic meltdown, the country's third-largest public sector lender, Bank of Baroda (BoB), is planning to set up a subsidiary in Malaysia in the next few months.

"We are seeking regulatory approval from the Malaysian authorities and it is at very advance stage. We expect approval during the year," Bank of Baroda Chairman and Managing Director M D Mallya told PTI.

BoB is the lead partner with 40 per cent stake in the three-way joint venture subsidiary, while Indian Overseas Bank and Andhra Bank hold 30 per cent stake each.

Malaysia has a huge growing economy and Indian banks presence is almost not there so it is a good opportunity to go and start, he said.

The Mumbai-based bank has the largest overseas presence with about 74 offices spread across 25 countries.

Currently, BoB has a representative office in Malaysian capital Kuala Lumpur. The only other Indian bank present in Malaysia is Kolkata-based UCO Bank.

Meanwhile, BoB has pipped Canara Bank in terms of net profit and total business for the fiscal 2008-09 to become third-largest player.