Indian Overseas Bank (IOB), a Chennai-based public sector bank will be joining hands with Bank of Baroda and Andhra Bank to open its branch offices in Malyasia. It is expected the new joint venture will starts its operations by end of 2009.
S A Bhatt, chairman and managing director, IOB notified that bank is entering into joint venture as part of its overseas expansion plan and bank want to enter Malaysia. But according to the Malaysian government norms, a bank must have a minimum capital of $100 million. However for any individual bank this is quite a big amount. Therefore a decision of getting into a partnership with other banks was taken which are exploring to start its operations in Malaysia.
Bhatt pointed out as per new joint venture IOB will have 30 per cent stake while Bank of Baroda and Andhra Bank will have 40 and 30 per cent respectively. The bank is also looking forward to open branches in New Zealand; temporarily it is putting off its plan to start operations in Australia and US.
Bhatt informed during the third quarter operating profit from the overseas branches during the quarter ended December 31, 2008 bank gained Rs 53 crore as compared to Rs 34 crore, a year ago.
He pointed out deposits from overseas operations have increased to Rs 3,590 crore as compared to Rs 2,700 crore, while growth in advances have been to Rs 5,225 crore from Rs 3,517 crore, a year ago.