3 Indian banks forms $58.4mn JV in Malaysia

Should Malaysian regulator approve the BoB, IOB and Andhra JV, the operations will start in June.

Public sector lenders Bank of Baroda (BoB), Indian Overseas Bank (IOB) and Andhra Bank have formed a joint venture to start banking operations in Malaysia shortly.

“We have jointly reached an agreement to open a full-fledged independent branch in Malaysia very soon. Bank of Baroda will hold 40 per cent stake, while IOB and Andhra Bank will share 35 per cent and 25 per cent respectively. We are waiting for the prior approval of the regulator there and I hope it will come in a month’s time from now. Our operations are likely to start in June 2011,” IOB chairman and managing director M Narendra told The Indian Express here on Friday.

When asked about the structure of the venture, Narendra did not divulge details about the total capital of the proposed bank.

View the full story in Indian Express.