RBI approves the proposal of setting up JV in Malaysia
Mumbai, Mar 23: Reserve Bank of India (RBI) has approved the proposal of three public sector banks to set up a joint venture (JV) entity to undertake banking business in Malaysia.
The three banks -- Bank of Baroda (BoB), Bank of Maharahstra (BoM) and Oriental Bank of Commerce (OBC)-- will hold equity stake in the ratio of 40, 30 and 30 per cent, respectively, in the Malaysian JV.
The total JV capital is Rs 345 crore in which BoM and OBC will contribute Rs 104 crore each while BoB will subscribe to the remaining amount of the equity.
''Now the Reserve Bank of India has accorded approval subject to complying with the Regulations of the host country,'' a BoM release to BSE here said.
In its approval order issued on March 13, the RBI gave a time frame of one year for the three partner banks to set up the venture in Malaysia.
The JV entity name will be finalised by the three partners after getting the approval from the Malaysian authorities. Initially, the JV would start its operation with a single branch at Kualumpur, said an official from BoM here.