Bank of Baroda Ghana has provided the facts about a deal it entered with Stanbic Bank Ghana following its intention to voluntarily wind up operations in Ghana.
According to the Bank, the decision to wind up commenced in December 2017 when the shareholders of Bank of Baroda (Ghana) Ltd. (BOBGL), accorded approval for the closure of BOBGL.
Therefore, reports in the media suggesting that Stanbic Bank took over Bank of Baroda Ghana’s operations because it was avoiding the ¢400 million minimum capital requirement is not accurate and must be disregarded.
The facts and sequence of events, Bank of Baroda said in a release published in full below, are as follows:
- Pursuant to the Government of India’s directives in respect of rationalisation of overseas operations of Public Sector Banks in India, Bank of Baroda India (BOBIN), decided to divest its banking activities from certain countries, including Ghana.
- The BOBIN policy resolution to divest its banking activities from Ghana was passed in December 2017.
- In light of the above, BOBIN, the shareholders of Bank of Baroda (Ghana) Ltd. (BOBGL), accorded approval for the closure of BOBGL.
- As authorized by BOBIN, the Board of BOBGL passed a resolution and notified the Bank of Ghana (BoG), of its intention to undertake a voluntary wind up of the Bank of Baroda (BOBGL) pursuant to section 139 (1) of the Banks and Specialised Deposit Taking Institutions Act, 2016 (Act 930).
- On 14th December 2018, BOBGL filed an application for Certification of Voluntary winding up of BOBG with BoG.
The BoG granted approval to BOBGL to voluntarily wind up its operations on 24th December 2018.
The statement signed by Praveen Kumar K. Managing Director of Bank of Baroda Ghana added that with the approval of BoG, BOBGL entered into an Assumption Agreement with Stanbic Bank Ghana Limited (Stanbic) to assume all deposits and loan portfolio of BOBGL and ensure a seamless banking service to all customers in the Accra, Tema, and Kumasi branches, effective 2nd January 2019.