BOI to become global, acquire Bank in Indonesia-Balchandran

Bhubaneswar, Feb 21 (UNI) As a part of strategy to become global, the Bank of India (BOI) has finalised acquiring 76 per cent stake in P T Bank Swadesi Tbk, a listed bank in Indonesia, and establishing subsidiaries in Tanzania, Toronto and China.

Announcing this to the newsmen here BOI Chairman cum Managing Director M Balchandran said the Bank's international operations contributed 19.45 per cent of the total business and 32 per cent of total net profit.

He, however, refused to disclose the price at which the deal had been finalised for acquiring the bank in Indonesia, which had as many as eight outlets.

Mr Balchandra further said the BOI was in the process of setting up a subsidiary in Tanzania, Toronto and China, a representative office in South Africa and a branch at Antwerp (Belgium).

He said the bank has already received the approvals from RBI to set up branches at Dhaka (Bangladesh) and DIFC (Dubai), a subsidiary in Canada, and a representative office at Dubai, Doha (U.A.E).

Mr Balchandran said with 2700 branches across the country and with a turn over of Rs 170000 crores, the bank had entered into an arrangement with the Dai-ichi Mutual Life Insurance, a Japanese company in the field of life insurance and Union Bank of India to set up a joint venture Life Insurance Company in the country.

Besides, the bank, the CMD said had entered into a strategic alliance with the Union Bank of India and Infrastructure Development Finance Co (TDFC) for loan syndication, internal business, cash management and cheque collection.

To a question, Mr Balchandran said the Bank would not make any change in the housing loan rate as it has already revised the prime landing rate from 12 per cent to 12.5 per cent.

He also clarified that RBI's recent decision to hike the cash reserve ration (CRR) would not have any adverse impact on the bank as it was very comfortable on resources front and there would be no liquidity problem.

On the expansion plan in the country, Mr Balchandran said as many as 70 new branches would be opened in 2008 adding that the bank has set a target to achieve the business to the tune of 200000 crores including a deposit of Rs 160000 crores.

UNI