Question

Which three public sector lenders have entered recently into a joint venture agreement for setting up a banking subsidiary, India BIA Bank (Malaysia) Bhd, in Malaysia?

• A. Bank of India, Indian Overseas Bank and Andhra Bank.
• B. Bank of Baroda, Indian Overseas Bank and Bank of India
• C. Bank of Baroda, Indian Overseas Bank and Andhra Bank.
• D. Bank of Baroda, Indian Bank, and Andhra Bank.

Hint:

Bank of Baroda led this joint Malaysian venture along with two other public sector banks, not Bank of India or Indian Bank.

Answer 1

The Correct Option is C

The right answer is option 3, Bank of Baroda, Indian Overseas Bank and Andhra Bank.

Back in 2010, a trio of Indian public sector banks decided to jointly promote a banking subsidiary in Malaysia. The three lenders involved were Bank of Baroda, which took the leading role and the biggest shareholding, along with Indian Overseas Bank and Andhra Bank as its co-promoters. Together they formed what was reported as India International Bank (Malaysia) Bhd, marking a rare case of Indian public sector banks pooling resources to jointly own a foreign banking arm rather than each setting up separate branches abroad.

Look closely at the other answer choices and you will see they substitute in banks that were not actually part of this deal, such as Bank of India or Indian Bank, in place of Bank of Baroda or Andhra Bank. Those substitutions make those combinations incorrect, since neither Bank of India nor Indian Bank held a stake in this Malaysian venture.

To sum up, the three public sector banks behind India International Bank (Malaysia) Bhd were Bank of Baroda, Indian Overseas Bank, and Andhra Bank, confirming option 3 as correct.