ANDHRA BANK TO OPERATE IN MALAYSIA SOON

By P. Vijian

NEW DELHI, July 9 (Bernama) -- The Hyderabad-based Andhra Bank plans to start operations of its Malaysian banking subsidiary, India BIA Bank (Malaysia) in three months, reported the Business Standard.

It has tied up with India-based Bank of Baroda (BoB) and Indian Overseas
Bank (IOB) to venture into Malaysia's banking sector.

"In all probability, we will register the subsidiary and start operations in
two to three months," R.S. Reddy, Andhra Bank's Chairman and Managing Director
told Business Standard.

According to media reports, Andhra Bank will hold a 25 per cent stake in the
subsidiary, BoB will own 40 per cent and IOB the remaining 35 per cent.

In June 2009, the three banks signed a joint venture agreement to set up the
subsidiary.

The three Indian banks were reported to have received the regulatory
approvals from Reserve Bank of India and Malaysia's central bank Bank Negara
Malaysia for their operations.

Both BoB and IOB have set up representative offices in Kuala Lumpur.

Andhra Bank, started in 1923, is one of the oldest banks in India, with
1, 557 branches nationwide.
-- BERNAMA