Bank of India, one of the largest commercial banks of India, is scheduled to open its first branch in New Zealand shortly.
The Bank has established the ‘Bank of India New Zealand Limited (BOINZ),’ as its wholly owned subsidiary with a capital base of $50 million, after the Reserve Bank of New Zealand granted it the status of a commercial bank.
BOINZ Managing Director Nageshwar Rao Paladugu said that the subsidiary and the first branch of the Bank will be located at 10 Manukau Road, Epsom in Auckland.
He indicated that the Branch would become operational by next month, subject to requisite approvals obtained from the concerned authorities and others systems and procedures in place.
“The Branch will provide Retail and Commercial Banking services including Term Deposits, Savings Accounts, Current Accounts, Remittances, Personal Loans, Mortgage Loans, Housing Loans and Business and Commercial Loans. We are also planning to provide ATM, Internet Banking and Card products,” he said.
The Subsidiary will be managed by a locally constituted board of directors with Tarun Kanji as the Chairman. Among the other members of the Board are B A Prabhakar (Executive Director), Peter Holland and Mr Rao.
Established in September 1906 with a Paid-Up Capital of about $US 110,000 (in today’s terms) with 50 employees, the parent Bank has grown to become one of the largest financial institutions in India.
“New Zealand has been identified as a big market for the Bank’s international growth, particularly with increasing volume of trade and the presence of a sizeable Indian population,” Mr Rao said and added that Bank of India was the first Indian bank to establish its overseas presence more than 65 years ago.
As at the end of March 2011, the Bank’s Operating Profit was $US 1.20 billion, up by 14.43% over the previous year, while Net profit, placed at $US 558 million, represented a rise of 43% over the same period. The Bank’s global business reached $US 115.49 billion (an increase of 28.41%), with a total customer base of 45 million. The total number of outlets including branches (3490), zonal offices and extension counters was 3593 as at the end of March this year.
A detailed analysis of the Bank of India will appear in our next issue.