India BIA Bank (Malaysia) Bhd, a Malaysian banking subsidiary of Indian public sector lenders Andhra Bank, Bank of Baroda (BOB) and Indian Overseas Bank (IOB), is expected to commence operations in the next three months.
Andhra Bank, BOB and IOB have already received clearance for the Malaysian subsidiary from both the Malaysian Central Bank Bank Negara as well as its Indian counterpart the Reserve Bank of India.
According to Bank Negara, Andhra Bank holds 25%, BOB holds 40% and IOB holds 35% stake in India BIA Bank (Malaysia) Bhd.
Nearly 8% of the Malaysian population are said to be of of Indian origin. India BIA Bank intends to cater to the Indian diaspora in Malaysia.
RS Reddy, chairman and MD of Andhra Bank, said: “In all probability, we will register the subsidiary and start operations in two-three months. The subsidiary will work as 8% of the population of Malaysia, about 2.1 million people, are of Indian origin. Besides, the bilateral trade between India and Malaysia is rapidly growing and now stands at about $10bn,” reported the Business Standard.