Indian retail banks join forces to open bank in Mozambique

13 August 2012

Indian retail banks Punjab National Bank (PNB) and Central Bank of India (CBI) plan to set up a partnership to open a bank in Mozambique by the end of this year, the chairman and chief executive of CBI said in Calcutta Saturday.

On the sidelines of a seminar organised by the Federation of Indian Chambers of Commerce and Industry, MV Tanksale said he had been given instructions by the Finance Ministry to set up a bank in Mozambique in partnership with the PNB.

“It will be a 50-50 partnership between our bank and the PNB or a three-way partnership with a bank operating in Mozambique,” said the chairman of the CBI, who added, “we are considering all the options in order for the bank to start operating this year.”

Cited by the Press Trust of India (PTI), Tanksale declined to give further details, such as the amount of investment needed or the type of bank that will be established in Mozambique, saying only that, “it is still too early to discuss this matter.”

India’s central bank is the Reserve Bank of India and the Central Bank of India, with headquarters in Mumbai, is a state-owned retail bank.

Mozambique currently ahs 18 retail banks and the biggest challenge of its central bank is to take banking services to remote areas, as of the 128 districts in the country only 58 have bank branches. (macauhub)