Kotak Mahindra Bank Ltd ("Kotak"), on August 2 2011, entered into a Business Cooperation arrangement with CIMB Group Sdn Bhd, Malaysia ("CIMB").
The two financial institutions have entered into a Framework Agreement to cooperate and explore opportunities arising from cross border business, investment and trade flows, with a focus on select countries in the India-ASEAN corridor. The cooperation would cover various businesses of mutual interest including M&A advisory, Trade Finance and other corporate solutions, and NRI Banking & Remittances, subject to relevant regulations.
Commenting on the development, Mr. Uday Kotak said - "We are delighted at this cooperation with a reputed and large regional financial institution of the stature of CIMB. We see this as a significant opportunity for the two financial institutions to leverage their strengths to serve respective customers better in the Indo-ASEAN corridor across a range of financial services."
CIMB Group is Malaysia's second largest financial services provider and one of ASEAN's leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, the Group is present in 8 out of 10 ASEAN nations (Malaysia, Indonesia, Thailand, Singapore, Cambodia, Brunei, Vietnam and Myanmar). Beyond ASEAN, the Group has market presence in China, Hong Kong, Bahrain, India, the US and the UK.
With the largest branch network in ASEAN of 1,105 branches as at June 30 2011, the Group reaches at least 81% of the ASEAN population, representing 89% of the region's GDP. It has a market capitalization of approximately US$ 22 billion as at June 30 2011. The Group has over 39,000 employees located in 13 countries.
The arrangement reflects Kotak's growing commitment to mine Indo-global opportunities through meaningful partnerships with leading global financial institutions. As Indian companies explore cross-border opportunities and partnerships, the ASEAN region has grown in importance. The cooperation between Kotak and CIMB will serve clients of the two financial institutions better in the Indo-ASEAN corridor, helping them capture the immense potential that is yet to be tapped fully.
