In a foray into the growing Southeast Asian market, India's largest financial institution, Bank of Baroda, today opened an office in Kuala Lumpur to facilitate expanding trade between the two countries.

"Malaysia and India have economic synergies. In the last six months, Malaysian exports (to India) surged 135 percent," Arun Tiwari, Baroda's chief representive in Malaysia told AFP .

Malaysia's exports mainly consisted of palm oil and electrical and electronic products.

It is the first Indian bank to set up office in Malaysia. Established in 1908, Bank of Baroda has 2,700 branches in India.

Arun said among the services the bank would provide included: dollar denominated loans, trade financing and remittances from Malaysia to India.

Some 10 percent of Malaysia's 24 million population are ethnic Indians.

Future plans

On the bank's future plans in the region, Arun said "in the next few months," it would open a representative office in Bangkok, Thailand and an Offshore Banking Unit in neighbouring Singapore.

Increasing economic cooperation and trade resulted in growth of more than 30 percent in bilateral trade between India and Malaysia in fiscal 2003-04, with trade volume crossing US$2.5 billion.

The bank has 55 overseas offices spread over 17 countries comprising 38 overseas branches including three Offshore Banking Units. The bank also has one joint venture in Zambia, which has nine branches.