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 from Bank of Baroda to Citi Business News dismissed reports of a takeover indicating that it is rather voluntarily winding up its Ghana operations due to a regulatory decision by the Indian government.
Below is the full statement
Our attention has been drawn to a story that appeared on graphic.com and Myjoyonline 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…”
This assertion is false.
The facts and sequence of events are as follows:
1. Pursuant to the Government of India’s directives in respect of rationalization 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.
2. The BOBIN policy resolution to divest its banking activities from Ghana was passed in December 2017.
3. In light of the above, BOBIN, the shareholders of Bank of Baroda (Ghana) Ltd. (BOBGL), accorded approval for the closure of BOBGL.
4. As authorized 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).
5. On 14th December,2018, BOBGL filed an application for Certification of Voluntary winding up of BOBG with BoG.
6. The BoG granted approval to BOBGL to voluntarily wind up its operations on 24th December, 2018.
With the approval of BoG, 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.
Based on the above information and sequence of events, it is our expectation that graphic.com and myjoyonline.com will correct the story with immediate effect and accurately represent the information as presented above.
All enquiries about this release and matters relating to the Bank of Baroda (Ghana) Ltd. should be directed to md.qhanabankofbaroda.com.
Praveen Kumar K. Managing Director
2nd January, 2019