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.

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