"The bank has sanctioned certain credit facilities to Gupta family group (of South Africa) in the past as per laid down norms. The present outstanding is Rs 27.58 crore and it is backed by more than 100 per cent security," it said in a clarification sought by exchanges on media reports.
Bank of Baroda earlier on February 7 informed that the South African Reserve Bank was investigating allegations regarding compliance lapses at the banks branch there and it is cooperating in the matter.
BoB's response was also in clarifications sought by exchanges regarding a news report citing the banks involvement with a particular Indian origin family in South Africa extending to a political scandal there.
The news report referred to the banks dealings with Uttar Pradesh hailed one Gupta family, now settled in South Africa and follows information furnished by the bank to exchanges in August 2017 about paying Rs 54.5 million as penalty that was imposed on its South Africa branch by the local regulator.
It had also informed about paying Rs 4.23 million 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 had said in a regulatory filing to the exchanges.
As per Bank of Baroda some of the matters are sub-judice, including its appeal against a fine of an equivalent of Rs 50 million.
Many of these allegations are on historical transactions and the bank has since then significantly improved the compliance process and these remediation measures would ensure that KYC/AML (Know Your Customer/Anti-Money Laundering) are completed to fullest satisfaction of internal review and to meet the expectations of various regulators, it had said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)