Bank of Baroda to close down, 4 banks bid to take over

BoB
  • The Bank of Baroda is voluntarily exiting Ghana by December 31, 2018.
  • Sahel Sahara and CAL Bank are two of the four banks bidding to take over the bank.
  • The Bank of Baroda had valued its net worth around GHC200 million

Some four banks are bidding for an opportunity to purchase the local operations of Bank of Baroda Ghana Limited.

This is coming after the Indian state-owned lender voluntarily decided to voluntarily liquidate its business and leave the country by December 31, 2018.

Sahel Sahara Bank and CAL Bank are part of the four banks hoping to take over the bank by the end of the year.

Sahel Sahara is looking for a third source of funding to make up for the capital deficit that will emerge from its ongoing merger with Omni Bank Ghana Limited.

According to Daily Graphic, a source in one the interested banks said that the Bank of Baroda had valued its net worth around GHC200 million. The bank that wins the bid is expected to now pay about GHC186 million for mainly, Baroda’s deposits.

The source added that CAL Bank is “a likely winner” because “it is in a position to pay cash outright.”

“We wanted to make it a merger so that by the first quarter next year we can raise the funds and pay them (Baroda) off so that they can go, but they just want cash,” it said.

One source, who has been briefed on Baroda’s decision to wind up its Ghana operations, said it was based on a resolve by the parent company not “to accumulate excess capital that it will not have a need for.”

Meanwhile, CAL Banks Head of Investor Relations, Ms Dzifa Amegashie, had earlier confirmed the bank’s interest in Baroda. She said this on December 14 and added that they were in the early stages and no due diligence has been done.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

9 most expensive African countries to rent a one bedroom apartment, based on property price to income ratio

9 most expensive African countries to rent a one bedroom apartment, based on property price to income ratio

Top 10 happiest countries in Africa in 2022

Top 10 happiest countries in Africa in 2022

Here are the top 10 cities in Africa where the most rich people live

Here are the top 10 cities in Africa where the most rich people live

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

These 6 countries have the highest unemployment rates in Africa

These 6 countries have the highest unemployment rates in Africa

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Top 10 African countries with the highest corporate tax rates

Top 10 African countries with the highest corporate tax rates

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match