Question

Which three public sector lenders have entered recently into a joint venture agreement for setting up a banking subsidiary, India BIA Bank (Malaysia) Bhd, in Malaysia?

• A. Bank of India, Indian Overseas Bank and Andhra Bank.
• B. Bank of Baroda, Indian Overseas Bank and Bank of India
• C. Bank of Baroda, Indian Overseas Bank and Andhra Bank.
• D. Bank of Baroda, Indian Bank, and Andhra Bank.

Hint:

Bank of Baroda led this joint Malaysian venture along with two other public sector banks, not Bank of India or Indian Bank.

Answer 1

The Correct Option is C

The correct answer is Bank of Baroda, Indian Overseas Bank and Andhra Bank.

In 2010, three Indian public sector banks, Bank of Baroda, Indian Overseas Bank, and Andhra Bank, came together in a joint venture to set up a banking subsidiary in Malaysia, referred to in reports of the time as India International Bank (Malaysia) Bhd. This was notable as one of the first instances of Indian public sector banks jointly promoting a full fledged commercial bank outside India, aimed at serving trade finance and banking needs of Indian businesses and the local Malaysian market.

Bank of Baroda held the largest stake among the three partners, with Indian Overseas Bank and Andhra Bank as the other two joint promoters. The other option combinations mix up the actual participants, either swapping in Bank of India or Indian Bank in place of one of the real three partners, but neither Bank of India nor Indian Bank was part of this particular Malaysia venture.

So the correct trio behind this joint venture bank in Malaysia was Bank of Baroda, Indian Overseas Bank, and Andhra Bank.