Mumbai : Bank of Baroda along with Indian Overseas Bank and Andhra Bank are in advanced discussions with a possible buyer to sell their stake in Malaysian joint venture —India International Bank (Malaysia) Berhad, two sources involved with the negotiations said.
The top management of Bank of Baroda, which is leading the talks, is already in Malaysia to hold detailed discussions with the proposed buyer, one of the sources said.
Bank of Baroda holds a 40 per cent stake in India International Bank (Malaysia), while Indian Overseas Bank and Andhra Bank own 35 per cent and 25 per cent stake, respectively.
The three state-owned banks have already sounded out the local regulator on plans for the exit.
In addition to normal banking operations, India International Bank (Malaysia) focuses on trade financing, foreign exchange transactions, and overseas remittances.
Indian Overseas Bank had earlier offered its stake to the other Indian partners. However, with all the three banks coming under stress because of bad loans, the three banks decided to jointly look for a buyer and Bank of Baroda was asked to take the lead in the talks, a second source said.
All the three banks, which made losses in 2017-18 (April-Maril), have been looking to sell non-core assets to shore up their capital base.