Banking subsidiary of public sector lender, Andhra Bank would start operations in the upcoming three months.

"In all probability, we will register the subsidiary and start operations in two-three months," Chairman and Managing Director RS Reddy said.

The subsidiary would be set up in association with Bank of Baroda and Indian Overseas Bank. The bank has 25% stake in the venture which has been initiated to cater to the needs of the Indian population in Malaysia.

The subsidiary has obtained approval from both the Reserve Bank of India and Malaysian Central Bank. Since BoB already has a representative office in Malaysia, so formalities will be cleared smoothly, Reddy said.

The bank plans to open 120 more branches in 2010-11, out of which 50 will be outside Andhra Pradesh.

Also, IndiaFirst Life Insurance Company, an insurance joint venture (JV) of Andhra Bank, BoB and Legal and General Plc of the UK, has started operations in the country. Andhra Bank has 30 per cent stake in the JV.