Bank of Baroda (BoB), the second-largest public sector bank (PSB) in India, witnessed a surge in its share price, reaching a fresh 52-week high of ₹233.75 per share on the Bombay Stock Exchange (BSE). The boost came following the bank’s announcement inviting potential buyers to sell stake in its New Zealand arm.
Stake Sale in Bank of Baroda’s New Zealand Arm
In a newspaper advertisement released on December 27, Bank of Baroda disclosed its intention to divest its entire 100 percent stake in Bank of Baroda (New Zealand). The bank is actively seeking an investment banker for the sale and disinvestment process. The deadline for the submission of proposals has been set at 2:00 pm on January 24.
Bank of Baroda’s Guarantee on New Zealand Subsidiary Liabilities
Bank of Baroda reassured stakeholders that all liabilities of its New Zealand subsidiary are guaranteed by the parent bank. The invitation is open to private/public limited companies, LLPs, and firms globally, creating an inclusive and competitive bidding environment.
Overview of Bank of Baroda (New Zealand)
Bank of Baroda (New Zealand) is a wholly owned subsidiary of Bank of Baroda. The parent bank boasts a robust international presence with 93 overseas branches or offices across 17 countries. On the domestic front, Bank of Baroda operates through an extensive network of 8,200 branches, including 4,942 in rural and semi-urban areas.
Bank of Baroda’s Strategic Moves and International Operations Overview
During FY22, the bank concluded its activities in Hong Kong and South Africa. Additionally, in FY2023, one of its branches in the UAE was shut down. As per the annual report of 2022-23, by March 31, 2023, the bank’s net total business from international branches amounted to Rs 3,20,722 crore, comprising 14.95 percent of the global business. Deposits totaled Rs 1,56,313 crore, with net advances reaching Rs 1,64,409 crore.
- Bank of Baroda shares surged to a 52-week high of ₹233.75 after announcing the sale of its entire stake in Bank of Baroda (New Zealand).
- The bank invites global participation for the stake sale, setting a submission deadline of January 24, with all liabilities of the New Zealand subsidiary guaranteed by the parent bank.
- Bank of Baroda, India’s second-largest public sector bank, has a vast international presence with 93 overseas branches and a domestic network of 8,200 branches.
- Bank of Baroda strategically exited operations in Hong Kong and South Africa in FY22, closed a UAE branch in FY2023.