Bank of India reportedly following Bank of Baroda to New Zealand

Bank of India reportedly following Bank of Baroda to New Zealand

Bank of India reportedly aims to be the second Indian bank, after Bank of Baroda, to obtain a banking licence in New Zealand.

Citing an official at the International Department in Mumbai, Australia's BankingDay is reporting that the state owned Bank of India has applied to the Reserve Bank for a banking licence.

A Reserve Bank spokesman told interest.co.nz that the central bank doesn't comment on specific bank applicants or prospective ones.

BankingDay said Bank of India aimed to operate in New Zealand as a locally incorporated subsidiary rather than as a branch and  hoped to obtain a licence within the next few months. The bank reportedly has no plans to set up in Australia.

Bank of Baroda, which is also state owned, became New Zealand’s 19th registered bank on September 1 last year, and offers deposit accounts and remittance services.

The Reserve Bank has a range of criteria it considers when deciding whether to grant a banking licence or not. This includes the standing of the applicant in the financial markets, ie its reputation and track record, and the suitability for their positions of the directors and senior managers.

The Reserve Bank says it will process any application and make a decision "as soon as practicable" but the length of time it takes to process applications will vary, and the time taken with any specific application will depend on the complexity of that application.

Merger partners Marac Finance, the Canterbury Building Society and the Southern Cross Building Society also hope to apply for a banking licence, but not until next July.

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