The Hindu Business Line : BoB takes new partners for Malaysian arm

Pune April 22 Bank of Baroda will set up a subsidiary in Malaysia in alliance with Punjab National Bank and Andhra Bank, instead of the earlier joint venture partners, Bank of Maharashtra and Oriental Bank of Commerce.

Dr Anil Khandelwal, Chairman and Managing Director, said that the necessary permissions for change of partners had been acquired from the Reserve Bank of India and an application would soon be filed with the Malaysian regulator for the proposed venture.

The new subsidiary, which will be a 40:35:25 partnership between Bank of Baroda, PNB and Andhra Bank, will entail an investment of Rs 360 crore, Dr Khandelwal added.

The venture comes at a time when Bank of Baroda is giving a thrust to its international banking business, which clocked 71 per cent growth last fiscal and 127 per cent over the last two years.

"We are proposing 50 per cent growth from the overseas business this year and expect the network outside the country to touch 100 over the next five years," Dr Khandelwal said.

Currently, Bank of Baroda has 60 overseas branches and subsidiaries, while 12 are due to be added during this fiscal.

The new locations identified include Port of Spain, Ghana, Qatar, Bahrain and Australia, while branches will be added to the existing network in the UK, Tanzania and Botswana. Dr Khandelwal also said that the bank hoped to get a licence soon to set up a subsidiary in Canada.

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