IOB set to take over Bharat Overseas Bank |
Our Banking Bureau / Mumbai January 28, 2006 |
India, Thailand agree on PSU bank's presence in Bangkok. Bharat Overseas Bank is set to be merged with Indian Overseas Bank. According to sources close to the development, the finance ministry and the Reserve Bank of India are working on merger plans and a formal announcement is due in March. Bharat Overseas Bank was originally designed to anchor Indian banks' overseas operations. The provocation was the Thai government asking Indian Overseas Bank to close its Bangkok branch in 1969 after its nationalisation. The government withstood the Thai pressure for four years and in 1973, following an RBI initiative, six private banks teamed up with Indian Overseas Bank to form Bharat Overseas Bank. "The Indian government has now reached an understanding with Thailand. The RBI has allowed Krung Thai Bank Public Co to set up shop in India and Thailand is ready to reciprocate the gesture. So, there will be no problem in Indian Overseas Bank taking over Bharat Overseas Bank," said a source familiar with the development. Bharat Overseas Bank |