India’s Kotak Mahindra Bank (Kotak) and Malaysia’s CIMB Group Sdn Bhd have decided to join hands to source business in select countries in the Indo-ASEAN corridor (Association of South-East Asian Nations). ASEAN comprises Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.
Kotak called it a business co-operation arrangement, with a framework agreement signed by the two entities, and will explore opportunities in the cross-border space, investment and trade opportunities. The areas covered will be in M&A advisory, trade finance and other corporate solutions, and NRI banking and remittance-related services.
In recent years, India has been attempting to improve its political and trade relationships with neighbouring countries. The effort has both strategic and economic implications. Indian companies too have been more active in the region, whether it is software companies setting up software development centres, establishing sources for raw materials (the region is resource-rich) or acquiring companies. India has also signed trade agreements with countries, to improve trade in goods and services.
All these economic activities require banking support and Kotak, whose strength lies in wholesale banking or providing services to businesses, and CIMB are joining forces to exploit this opportunity. In a statement issued by Kotak, it said that CIMB is Malaysia’s second-largest financial services provider, is headquartered in Kuala Lumpur, and has a presence in 8 out of 10 ASEAN nations. CIMB will benefit as ASEAN countries too are seeking growth opportunities in India, to participate in its economic growth.
Read the press release on the BSE here.