OBC to form JV in Malaysia with BoB, BoM

Oriental Bank of Commerce (OBC), Bank of Baroda (BoB) and Bank of Maharashtra (BoM) plan to form a banking joint venture (JV) in Malaysia with an initial paid-up capital of Rs 350 crore.

OBC will contribute Rs 106 crore for a 30 per cent share of the capital with the two other banks bringing in a total of Rs 244 crore.

Of the other banks, one will bring in 40 per cent and the other will bring 30 per cent share of the capital in the JV for the branch to be set up at Kuala Lumpur.

Owing to higher capital requirements in Malaysia, the banks have decided to pool in resources to set up the branch. Reserve Bank of India's nod is awaited for the venture.

"Our board has approved the proposal," K N Prithviraj, chairman, OBC, said after inaugurating the bank's first 'retail shoppe' here today.

OBC also plans to open 20 more branches in the country as part of its plans to grow its business by 33 per cent to Rs 1,00,000 crore this financial year, Prithviraj, said.

The bank aims to increase loan advances to Rs 37,000 crore in 2005-06 compared with Rs 27,000 crore during the last fiscal by focusing on the retail segment.

Prithviraj said the bank would open more retail shoppes as part of its efforts to push up retail loans. The erstwhile Global Trust Bank (GTB) is expected to chip in Rs 14,000 crore of Rs 1,00,000 crore of OBC's expected business in 2005-06.

On the issues relating to the merger of GTB, Prithviraj, said, "Only the issue of outsourcing of work by GTB remains to be resolved.". GTB had outsourced some of its work, employing people at as low as Rs 3,000 a month.

"Either we will have to get rid of this outsourcing or have to find some other way out. The scheme of amalgamation did not include these employees," he said.