Three Indian banks form joint venture in Malaysia

Kuala Lumpur, June 8 (ANI): Three Indian banks have put up an initial investment of 86 million dollars into a joint venture to set up a subsidiary in Malaysia.

The three banks - Andhra Bank, Bank of Baroda and Indian Overseas Bank - have inked an agreement to set up the India BIA Bank (Malaysia) Bhd, which is expected to start operations by September.

Bank of Baroda chairman and managing director M. D. Mallya told reporters in Mumbai that they had received permission from the Reserve Bank of India for the joint venture, and would seek approval soon from the Malaysian authorities to open its branch in Kuala Lumpur.

Under the joint venture, Bank of Baroda will have a 40 percent stake, IOB 35 percent and Andhra Bank 25 percent, The Star reports.

The India BIA Bank will target the Indian corporate sector, expatriates from India and the Malaysia Indian community as their customers. (ANI)