Spain's BBVA expands operations in Asia

 

Spain's Banco Bilbao Vizcaya Argentaria looks set to expand it's operations into the Indian financial markets. BBVA has launched into the domestic retail banking sector by signing a 'memorandum of understanding' (MoU) with Bank of Baroda to form a joint-venture credit card business. This new entity plans to seek oiut further opportunities in the financial markets. BBVA had a market capitalisation of €37 billion, as of September 2010.

"The MoU show long-term commitment to the Indian market and is the first step to set up as significant business in India," Joiel Akilan, BBVA's chief representative in India, commented.

The agreement between both entities allows BBVA to acquire a 51% stake in the existing credit card subsidiary of Bank of Baroda, Bobcards for which the Spanish bank will make payment of approximately 33 Million euros.

Once the bank stabilises in card business, it has plans to develop other areas of financial services such as asset management and non bank finance company (NBFC). "Bank may look at the other opportunities in the financial sector in the future considering the vast un-banked population in India," said Akilan.