NRIs in Malaysia would soon be able to avail the services and products of India’s fifth largest bank, the Bank of Baroda. Plans are afoot to start a branch in Kuala Lumpur in late 2007 in a joint venture with the Punjab National Bank and the Andhra Bank.
With an eye on the large number of NRIs in Malaysia and the Indian companies operating there, the KL branch expects to draw substantial business from this source. BoB’s KL branch is the first of the 10 overseas branches that it is planning to set up this year. The Bank of Baroda already has 42 overseas branches, six subsidiaries, one joint venture and three representative offices in 21 countries doing business worth USD 9.5 billion in 2007. The overseas business accounts for 33% of its profits, which amounts to almost USD 78 million.
BoB has also received approval to upgrade its Guangzhou representative office into a full-fledged branch from the Chinese Banking Regulatory Commission. The bank plans to start a second branch in Shanghai to tap growing bilateral trade between India and China.
Entering its centenary year, BoB, will open its 10 new overseas branches in Australia, Bahrain, Trinidad and Tobago, Ghana, UK, South Africa, Kenya, Botswana, Tanzania and Uganda. Permission from the RBI has also been received by the BoB to open offices in New Zealand, Canada and Qatar, and approval from these countries is awaited.
Back home, Bank of Baroda has divulged plans to start on reverse mortgage loans for senior citizens in around 3 months. BoB’s home loan folder of Rs.6000 crore has grown substantially over the last three years, and the bank now seeks to venture into the reverse mortgage line of business. It faces competition initially from HDFC Bank, Punjab National Bank and Corporation Bank who are also working on the product.
BoB’s total business notched USD 48 billion on March 31, 2007, with a profit of USD 236 million.
