Bank of India (BoI) plans to establish subsidiaries in Shenzen, China and San Francisco, US "" a Nigerian unit is likely too "" by March 2006. | |
| The bank is also examining entry into various other markets such as Bangladesh, west African countries and Middle East. |
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| BoI plans to convert its representative office in Shenzen into a subsidiary, which will require a minimum capital of $20 million. The subsidiary will focus on corporate lending and export-import related services riding on the increasing Sino-Indian businesses flourishing there, said M Balachandran, executive director, Bank of India. |
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| The subsidiary is aimed to complement the business generated by the bank's two branches already present in Hong Kong. |
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| Bank of Baroda also recently converted its set up in Hong Kong into a branch to capitalise on the Indian business booming in China. |
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| The growing Sino-Indian relations has seen a growing number of Indian companies establishing their presence in China, with trade volume in 2003-04 having risen by 54 per cent to $7.597 billion. |
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| Bank of India, which generates 16 per cent of its profits from its overseas operations, is planning to convert its agency in San Francisco into a subsidiary. |
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| As an agency there are limitations in collecting deposits and in offering other retail banking services. |
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| The bank has been in the tightly regulated US market for the last 25 years with a subsidiary in New York and an agency in San Francisco. The subsidiary in New York has total assets of close to $1 billion. |
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| The bank is considering the option of reopening its set up in Nigeria which it closed down 5-6 years ago due to political tensions, said Balachandran. |
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| Aiming to increase its global footprint the bank is also looking at West African countries, Bangladesh and the Middle East. |
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