ALSO READPSU banks gain as FM says banks ready to support growth State Bank of India reports surprise loss in third quarter Bank of Baroda will no longer operate in South Africa Public sector banks trade mixed as re-capitalisation details emerge Bank of Baroda to stop operating in South Africa on March 31
"In line with the bank's strategic plan for rationalisation of overseas branches, the bank is exiting from its operations in South Africa," the filing said.
The bank further said that it will ensure an orderly exit in consultation with the local regulators.
Meanwhile, in a public notice regarding closure of South Afican operations, the bank said: "The branch will stop taking new/incremental deposits and disbursing loans with effect from March 1, 2018. Further, it will cease to operate and conduct the business of a bank with effect from March 31, 2018."
The bank had initiated operations in South Africa about 21 years ago.
The bank was responding to clarifications sought by exchanges regarding a news report citing the bank's involvement with a particular Indian origin family in South Africa extending to a political scandal there.
The news report referred to the bank's dealings with one Gupta family, now settled in South Africa and follows information furnished by the bank to exchanges in August 2017 about paying Rs 5.45 crore as penalty that was imposed on its South Africa branch by the local regulator.
It had also informed about paying Rs 42.26 lakh fine in Seychelles without giving details.
"As regards the news item, the Reserve Bank of South Africa is investigating the allegations against Bank of Baroda and the bank is actively cooperating and supporting these investigations," the bank said in a regulatory filing to the exchanges.
Of the total 5,558 branches, the Baroda (Gujarat) headquartered bank has 107 overseas branches.
The bank had reported a decline of 56 per cent in its net profit at Rs 112 crore for the third quarter ended December.
The bank had posted a net profit of Rs 253 crore in the corresponding October-December period of 2016-17.
Total income of the bank, however, was up marginally by 6.53 per cent, to Rs 12,976 crore during the quarter, as against Rs 12,181 crore in the year-ago period.
Shares of Bank of Baroda closed at Rs 168.65 apiece on the BSE, up 7.83 per cent.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)