Bank of Baroda, Stanbic deal not takeover – Bank clarifies

One of the bank's branches

One of the bank’s branches

All deposits and loan portfolio of Bank of Baroda have been handed over to Stanbic Bank effective January 1, 2019.
The move follows an assumption between the two banks.

A statement signed and issued by Bank of Baroda dismissed media reports of a takeover indicating that it is rather voluntarily winding up its Ghana operations due to a regulatory decision by the Indian government.

Our attention has been drawn to a story on January 1, 2018 titled, ‘Stanbic Bank ‘takes over’ Bank of Baroda’ in which it was alleged that, “The Bank [of Baroda] resolved to wind up its Ghana operations around August 2018 to avoid raising the GH¢400 million minimum capital, which it says its operation does not require.”

Stating the facts, the statement said pursuant to the government of India’s directives in respect of rationalisation of overseas operations of public sector banks in India, Bank of Baroda, India (BOBIN), decided to divest its banking activities from certain countries, including Ghana.

“The BOBIN policy resolution to divest its banking activities from Ghana was passed in December 2017.
In light of the above, BOBIN, the shareholders of Bank of Baroda (Ghana) Ltd. (BOBGL), accorded approval for the closure of BOBGL,” the statement said.

The statement said, “As authorised by BOBIN, the Board of BOBGL passed a resolution and notified the Bank of Ghana (BoG), of its intention to undertake a voluntary wind-up of the Bank of Baroda (BOBGL) pursuant to section 139 (1) of the Banks and Specialised Deposit Taking Institutions Act, 2016 (Act 930).”

It said on December 14, 2018, BOBGL filed an application for certification of voluntary winding up of BOBG with BoG.

The BoG according to the statement granted approval to BOBGL to voluntarily wind up its operations on 24th December, 2018.

With the approval of BoG, it said BOBGL entered into an Assumption Agreement with Stanbic Bank Ghana Limited (Stanbic) to assume all deposits and loan portfolio of BOBGL and ensure a seamless banking service to all customers in the Accra, Tema, and Kumasi branches, effective 2nd January, 2019.

By Times Reporter

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