“Our Mumbai representative office in Bandra Kurla Complex is our first step into India. Given our strong cultural linkages and India’s position as a major trade and investment partner for Malaysia and the region, CIMB is positioning itself to facilitate the flow of goods, capital and business partnerships between India and ASEAN,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.
Between 2007 and June 2011, there was approximately USD13.2 billion of deal activity between India and ASEAN. ASEAN is emerging as a significant destination for India’s outward FDI, amounting to USD12 billion, or 27% of overall investments of USD43.9 billion, in 2010-11. During the first two months of the current financial year, ASEAN absorbed 21% of India’s outward investments of USD5 billion. (Source: Reserve Bank of India).
CIMB’s partnership in India with Kotak is in the form of a Business Cooperation Arrangement. The two financial conglomerates inked the agreement, which will see both parties cooperate and explore opportunities arising from cross border investments and trade flows, with a focus on select countries in the India-ASEAN corridor. The cooperation would cover areas of mutual interest including M&A advisory, trade finance and remittance.
"Our partnership with Kotak is an important strategic move for CIMB Group. The DNA and associated fit between our two organisations are obvious and given the expected business flows between India and ASEAN, I think this partnership will prove a great success," added Nazir.
Nazir also elaborated that CIMB was excited about sharing its ASEAN experience with Kotak; and learning more about the Indian market from them.
Meanwhile, Uday Kotak, Executive Vice Chairman & Managing Director of Kotak Mahindra Bank 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 two financial conglomerates to leverage their strengths to serve respective customers better in the Indo-ASEAN corridor across a range of financial services”.
About CIMB Group
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 now 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 UK.
With the largest branch network in ASEAN of 1,105 branches as at 30 June 2011, the bank is helmed by people from the region. We reach at least 81% of the ASEAN population, representing 89% of the region's GDP.
The Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the majority shareholder of Bank CIMB Niaga in Indonesia, and the single largest shareholder of CIMB Thai in Thailand.
CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It has a market capitalisation of approximately US$22 billion as at 30 June 2011. The Group has over 39,000 employees located in 13 countries.
About Kotak Group
Established in 1985, the Kotak Mahindra Group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, received the banking license from the Reserve Bank of India (RBI). With this, KMFL became the first non-banking finance company in India to become a bank - Kotak Mahindra Bank Ltd.
The Kotak Mahindra Group has a consolidated net worth of approximately US$ 2.5 billion as on June 30, 2011. The Group offers a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, mutual funds, life insurance and investment banking, the Group caters to the diverse financial needs of individuals and the corporate sector. The Group has a wide distribution network through branches and franchisees across India, and international offices in London, New York, California, Dubai, Abu Dhabi, Bahrain, Mauritius and Singapore.
For more information on Kotak, please visit: http://www.kotak.com.