Kotak Mahindra Bank Ltd (“Kotak”) today announced in Mumbai that it has entered into a Business Cooperation arrangement with CIMB Group Sdn Bhd, Malaysia (“CIMB”).
As per a Framework Agreement, which Kotak and CIMB entered into today, the two financial institutions will cooperate and explore opportunities arising from cross border business, investment and trade flows, with a focus on select countries in the India-ASEAN corridor. The cooperation would cover various businesses of mutual interest including M&A advisory, Trade finance and other corporate solutions, and NRI Banking & Remittances, subject to relevant regulations.
Commenting on the development, Uday Kotak, Executive Vice Chairman & Managing Director of Kotak Mahindra Bank said: “We are delighted at this cooperation with a reputed and large regional financial institution of the stature of CIMB. We see this as a significant opportunity for two financial institutions to leverage their strengths to serve respective customers better in the Indo-ASEAN corridor across a range of financial services”.
CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, the Group is present in 8 out of 10 ASEAN nations (Malaysia, Indonesia, Thailand, Singapore, Cambodia, Brunei, Vietnam, and Myanmar). Beyond ASEAN, the Group has market presence in China, Hong Kong, Bahrain, India, the US and UK.
With the largest branch network in ASEAN of 1,105 branches as at 30 June 2011, the bank is helmed by people from the region. It reaches at least 81% of the ASEAN population, representing 89% of the region's GDP. It has a market capitalisation of approximately US$22 billion as at 30 June 2011. The Group has over 39,000 employees located in 13 countries.
As Indian companies explore cross-border opportunities and partnerships, the ASEAN region has been growing in importance. The cooperation between Kotak and CIMB will serve clients of the two financial institutions better in the Indo-ASEAN corridor, specifically Malaysia and Indonesia which are amongst the largest countries in ASEAN, and help clients capture the immense potential that is yet to be tapped fully.
