India’s state-owned banking firm Bank of Baroda (BoB) has decided to terminate its operations in South Africa.

Following the decision, the South African branches of BoB will stop a majority of the transactions including deposits, disbursing loans from 1 March this year and terminate all activities and business from 31 March 2018.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

In a regulatory filing, the bank said that ceasing business in South Africa is part of its strategic plan for rationalisation of overseas branches.

It also said that the decision will not have a major impact on its financials as its business in the country was not significant.

The decision, already notified to the South African central bank SARB, comes at a time when BoB is facing a regulatory probe in the country over compliance issues.

SARB, in a statement, said its Registrar is in discussions with BoB to ensure its orderly withdrawal from South Africa without impacting any depositor.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last week, the bank said that SARB is investigating the allegations and BoB is actively cooperating in it. It is under scrutiny regarding its association with a business family that led to a political scandal.

Earlier, BoB reported a 56% fall in its net profit for the quarter that ended in December 2017. In the October-December quarter, BoB registered a profit of INR1.12bn ($17.44m).