Three Indian banks forge ties to float Malaysian ventureJanuary 30th, 2009 - 7:32 pm ICT by IANS
Chennai, Jan 30 (IANS) Three Indian banks - Indian Overseas Bank (IOB), Bank of Baroda and Andhra Bank - will soon float a Malaysian banking joint venture to take advantage of the opportunities there, said a top official. “We hope to get the green signal from the Malaysian authorities to start banking operations there by March,” IOB’s chairman and managing director S.A. Bhat told reporters here Friday while sharing the bank’s performance numbers.
According to him, the three-way joint venture was necessary as the minimum capital to start banking services in Malaysia was $100 million, which he said was too high for an individual bank to invest.
While IOB will hold around 35 percent in the Malaysian venture, Bank of Baroda and Andhra Bank will control 40 percent and 25 percent, respectively.
For the quarter ended Dec 31, IOB posted a net profit of Rs.3.88 billion (Rs.388 crore), up 26 percent over the Rs.3.08-billion (Rs.308.18-crore) profit registered in the corresponding period the previous fiscal.
The bank’s total income for the period under review went up 39.63 percent to Rs.32.04 billion (Rs.3,204.9 crore) as against Rs.22.95 billion (Rs.2,295.34 crore) for the corresponding quarter of 2007-08.
For the nine months ended Dec 31, IOB’s total business grew 21.86 percent to Rs.1,625.75 billion (deposits Rs.908.66 billion, advances Rs.717.09 billion) from Rs.1,334.13 billion (deposits Rs.787.91 billion, advances Rs.546.22 billion) posted during the corresponding period the previous fiscal.
The bank’s net profit in this period this fiscal improved 11.94 percent to Rs.10.03 billion, compared to Rs.8.96 billion posted in the corresponding period the previous year.
Incidentally, IOB’s exposure to the controversy-ridden Maytas Infra is around Rs.920 million.