Indian state-owned lender Bank of Baroda has decided to shut its three foreign branches in a bid to consolidate its overseas operations.
The bank in a regulatory filing said that it will close its branches in Guyana, Trinidad and Tobago and Ghana by 30 June next year.
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The three branches contribute less than a 1% each to the bank’s consolidated business, new agency PTI reported quoting the regulatory filing.
The Ghana branch generated revenue of INR 753.1m. The branches at Trinidad and Tobago and Guyana offered business of INR239m and INR263.8m, respectively. However, the bank did not specify the time period of these corresponding revenues.
Bank of Baroda foreign branch closure
The move follows earlier reports that Bank of Baroda is planning to sell two foreign subsidiaries, which included its operations in Ghana and Trinidad and Tobago.
In August, it was reported that multiple Indian public-sector banks are planning to together close 70 foreign branches.
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By GlobalDataThe overall programme was a part of the Indian government’s strategy to rationalise overseas businesses of the state-owned lenders.
It also includes merging two or more branches into a single operating unit.
As on 31 January 2018, Indian public-sector banks had 165 overseas branches with State Bank of India (SBI) leading with 52 branches. SBI is followed by Bank of Baroda with 50 foreign branches.
Indian state-owned banks have maximum number of branches in the UK (32) followed by the UAE and Hong Kong.
