Canara Bank eyes South East Asian market

Canara Bank is exploring every option for increasing its overseas presence, primarily in South East Asia. M B N Rao, chairman and managing director, Canara Bank said, "We want to increase our presence in South East Asian countries. We are exploring every option that are available for the same."

Rao said the bank would not only be looking at branch expansion but also the option of acquiring smaller institutions or setting up bank in joint venture with any other bank.

"We have already set up bank in Russia in joint venture with State Bank of India. We can also adopt similar model with like minded bank," he said.

Meanwhile, Canara Bank will shortly be opening representative office in Sharjah and a branch office in Hong Kong.

In a parallel development, Canara Bank's foray into life insurance venture is in the process of taking firm shape as partners are likely to be finalised shortly.

It will be a three way venture, wherein Canara Bank will be holding majority share in the insurance company. Among the other two players, on would be an Indian bank and the other, a foreign insurance company who would hold 26 per cent.

"We are in the final stage of discussion and announcement are likely to be made shortly. Major progress would be made within the current financial year," Rao confirmed.

Initially, the capital base would be Rs 100 crore as per the statutory requirement, he hinted.

He was speaking on the sidelines of the 'banking conclave' organised by FICCI-eastern regional council.

At the same time, there will be significant activity in its 100 per cent subsidiary, Canbank Investment Management Services Ltd.

"We were discussing with few foreign asset management companies for strategic tie-ups. We are in final stage of discussion," Rao said.

There was also a possibility wherein Canara Bank would off-load stake in the subsidiary but would remain the majority shareholder.