BoB to Sell Oman Operations to Bank Dhofar

State-owned Bank of Baroda (BoB) has announced its decision to sell its Oman operations to Bank Dhofar as part of a broader strategy to rationalize its foreign business footprint. This acquisition will take place on a going concern basis, pending approval from regulatory authorities. The total business of BoB’s Oman operations is valued at 113.35 million Omani Rials, with a net worth of 25.54 million Omani Rials.

Background and Rationalization Strategy

BoB’s move comes as part of a comprehensive evaluation of its international operations. The bank has previously closed its wholesale branch in China during 2020-21 and divested its stake in Bank of Baroda (Trinidad and Tobago) Ltd to Ansa Merchant Bank Ltd. This strategy reflects BoB’s ongoing efforts to streamline its operations in various global markets.

Current Financial Position

As of March 31, 2024, BoB’s total business from international branches stood at Rs 3,83,409 crore, accounting for 16.02% of its global business. The bank’s total deposits amounted to Rs 1,98,444 crore, while net advances reached Rs 1,84,965 crore. This strategic divestment aligns with BoB’s goal to enhance operational efficiency and focus on its core markets.

Bank Dhofar: Key Points

Foundation: Established in 1990, Bank Dhofar is one of the leading commercial banks in Oman.

Headquarters: Located in Muscat, Oman.

Ownership: A publicly traded company on the Muscat Stock Exchange, with a diverse shareholder base.

Services: Offers a wide range of banking services, including personal banking, corporate banking, investment services, treasury operations, and Islamic banking products.

Network: Operates a network of branches and ATMs across Oman, providing convenient access to banking services for customers.

Financial Performance: Bank Dhofar has shown consistent growth in assets and profitability, positioning itself as a strong player in the Omani banking sector.

Recent Developments: Engaged in strategic acquisitions, including the planned acquisition of Bank of Baroda’s operations in Oman, to expand its market presence.

Commitment to Innovation: Focused on digital banking initiatives to enhance customer experience and streamline operations.