Second Indian bank enters NZ

Bank of India is the second Indian bank set to make a foray into New Zealand. It follows in the footsteps of Bank of Baroda.

Bank of India, one of India's largest four state-owned banks, has applied the Reserve Bank of New Zealand for a banking licence. The bank will operate as a locally incorporated subsidiary rather than a branch. RBNZ encourages banks to become locally incorporated entities rather than branches because of the resulting clear line of separation from the parent.

The bank hopes to get its licence within the next few months, said an official at the International Department in Mumbai who didn't want to be named.

The bank has no plans to set up in Australia, the official said.

As of June, Bank of India had total assets of around US$63 billion, and tier one capital of US$3.1 billion.