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Rediff News  All News  » Business » BoB to invest $8 m in Trinidad arm

BoB to invest $8 m in Trinidad arm

November 29, 2005 10:48 IST

Bank of Baroda is planning to invest $7-8 million in its proposed subsidiary in Trinidad and Tobago as part of its global expansion plan.

The public sector bank is obtaining regulatory approvals and expects to start operations sometime in the 2006, a senior bank official said.

Trinidad and Tobago, part of Caribbean Islands, has substantial population of Indian origin. Besides servicing them (Indians), the bank would also have local operations, he said.

BoB has followed a combination of branch, subsidiary and joint venture routes to expand its presence abroad. The specific options chosen for specific market is based on regulatory norms of the host country.

The bank plans to increase the share of its international operations to 20 per cent in total business from current 15 per cent and the share in profit from 25 per cent to 30 per cent in the next three years.

During 2004-05, the bank's overseas branches registered a growth of 19.79 per cent in deposits as well as advances.

All the overseas subsidiaries and joint venture, except in Tanzania, generate profits. BoB re-started operations in Tanzania in October 2004 by operationalising Bank of Baroda (Tanzania) Ltd at Dar-es-Salaam. During the current year, BoB opened representative offices in China and Malaysia.
Abhijit Lele in Mumbai