State-run lender Bank of Baroda will enter into a joint venture with South Korea's KB Financial Group on developing an innovative payments business, which may also include issuance of new branded cards.
The bank is also looking to set up a Korean Desk for meeting financing requirements of South Korean firms operating in India.
“This is in line with Prime Minister’s Look East Policy,” said PS Jayakumar, managing director of BoB.
The bank is also looking to provide its services to around 10,000 Korean individuals and fund the requirements of around 500 Korean corporates operating in India.
“This deal combines the strengths of Bank of Baroda local knowledge and distribution, with KB Fin Group’s technology, analytics and Korean relationships for the benefit of expanding business and mutual knowledge transfer,” he added.
Joon Kyoo Yoon, chairman of KB Financial Group said that they have got a preliminary approval for opening a branch. “It took us four years and we are now hopeful that we will be able to start our operations by February next year. We will be looking to increase our network, based on regulatory approvals,” he said.
Yoon further said that they will be interested in areas such as consumer finance, loans to small and medium enterprises and infrastructure financing.
“India is an emerging market and we will be very interested in part of the digital payment setup,” he added.
India and South Korea had signed agreements on trade and commerce. Prime Minister Narendra Modi and South Korean President Moon Jae-in also inaugurated Samsung’s 35-acre Noida factory.
Re-dessiminated by The Asian Banker from Economictimes.com