Bank of Baroda Looking To Sell Its New Zealand Business
Public-sector banks have been winding down operations in overseas locations to achieve cost efficiency and profitability.
Bank of Baroda said on Wednesday it is looking to sell its entire stake of 100% in its New Zealand business.
The bank has invited proposals from investment bankers to help with the sale of the business. The last date for submission of proposals is Oct. 21, according to a document on the bank's website.
Bank of Baroda (New Zealand), a wholly owned overseas subsidiary, was incorporated in May 2008. The bank operates from three branches—Auckland, Wellington, and Manukau.
The total business of Bank of Baroda's New Zealand business stood at Rs 994 crore as of March 31, compared with Rs 108.9 crore two years ago. The total loan book is at Rs 581.5 crore as of March 31. The three branches in New Zealand contribute less than 0.5% to the bank's consolidated business.
The Bank of Baroda, along with other public-sector banks, have been winding down operations in overseas locations to achieve cost efficiency and profitability. Rationalisation of public-sector banks' branches is part of the Union government's clean and responsible banking initiative in 2017.
Last December, the state-owned bank authorised the sale of its majority stake in Nainital Bank and relinquish control. Currently, the Bank of Baroda holds 98.57% of stake in Nainital Bank. In March, the bank approved the divestment of up to 49% of its shareholding in its credit card subsidiary. BoB Financial Solutions Ltd.
Shares of the lender was trading 0.02% higher at Rs 213.70 apiece, compared to a 0.46% decline in the benchmark NSE Nifty 50 as of 10.50 a.m.
