[Photo provided by KB Financial Group]
South Korea’s KB Financial Group will join hands with India’s state-run Bank of Baroda to broaden its presence in the booming Indian market.
The group said Tuesday its Chairman Yoon Jong-kyoo signed a strategic partnership with Bank of Baroda in New Delhi on Monday. Yoon is in the country as part of the business entourage of President Moon Jae-in in his four-day state visit to India.
The two banks are expected to collaborate in a wide range of financial services including personal and corporate banking, trade finance, card and mobile payment. The Korean financial giant expects that forging ties with Bank of Baroda, India’s No. 2 state-owned bank with 52,000 employees and 5,400 branches, would expedite its business expansion in the Indian financial market.
Its banking unit KB Kookmin Bank currently operates a single liaison office in India in the city of Gurgaon, and it is seeking to change the office into its first Indian branch. Once the transition is complete, the newly launched branch aims to tap into the network and client base of Bank of Baroda to offer syndicated loans. A syndicated loan is a mid-to-long term loan offered by a group of two or more lenders to a single borrower under the same conditions.
KB Kookmin Card also plans to work closely with Bank of Baroda to bolster its digital payment capabilities, including mobile payment, additional card services and non-face-to-face financial instrument trading, in line with the Indian government’s initiative towards a cashless economy.
By Kim Tae-sung and Kim Hyo-jin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]