The Hindu Business Line : Bank of India in talks to buy Indonesian bank

BANK of India is exploring the possibility of an overseas acquisition and is also considering raising around $200-$300 million by way of medium term notes next year, to fund its global expansion plans.

In countries where it is more expensive to set up a branch, the bank may consider going in for acquisitions, said Mr M.Venugopalan, Chairman and Managing Director, Bank of India, speaking to presspersons on the sidelines of the launch of the bank's International Gold Credit Card in association with Visa International.

"In Indonesia we have a representative office. But if we decide to convert it to a branch, it would mean an investment of at least $100 million. It would be cheaper to acquire some bank, which already has four to five branches. We are speaking to a couple of banks in this regard," he said.

The bank was also looking to raise $200-300 million through a medium term notes programme, the details of which have not been finalised yet, he added.

BOI also has plans to set up branches in Antwerp (Belgium) and Shenzen (China) shortly.

Responding to queries on the rumours of a merger between BOI and Union Bank of India, Mr Venugopalan said, "We are not averse to mergers and acquisitions, but there is nothing specific as of now."

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