Source:Reuters / Kuala Lumpur April 17, 2010, 0:04 IST
Malaysia has awarded a commercial banking licence to a locally incorporated bank to be owned by Bank of Baroda (BoB), Indian Overseas Bank (IOB) and Andhra Bank.
Bank Negara said the licence was given as a reinstatement of a commercial banking licence to an Indian bank that had formerly operated in Malaysia.
The earlier bank had been affected by a rule that was previously in force which prohibited any commercial bank under the effective control of a foreign government from holding a banking licence in Malaysia. BoB would hold a 40 per cent stake in the bank, IOB 35 per cent and Andhra Bank 25 per cent, Bank Negara said. The issue of the licence was not part of the new commercial banking licences to be issued under the country’s liberalisation measures announced last year, the central bank said.
The new licence will add to Malaysia’s already crowded banking sector, which has nine commercial banks serving a population of 28 million.
In November last year, Industrial and Commercial Bank of China was given a commercial banking licence as part of a bilateral agreement.
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