Bank of Baroda (BOB), India’s third-largest nationalised bank with global business worth more than $85 billion, is to establish commercial banking operations in New Zealand, initially with a branch in Auckland.

The bank will function as a subsidiary company, offering a wide range of banking services, sources in Mumbai told NBR last night.

It is understood that the subsidiary will be governed by a board, comprising local and overseas directors to meet Reserve Bank regulations and that the process is now in its final stages of approval.