After RBI bans Bob World, Bank of Baroda shares decline around 3%

Shares of state-owned lender Bank of Baroda declined more than 3 per cent on Wednesday.

On Tuesday, the Reserve Bank of India barred the Bank of Baroda from onboarding new customers on its mobile app 'Bob World' following material supervisory concerns.

The action taken by the central bank is based on certain material supervisory concerns observed in the manner of onboarding customers onto its mobile application.

In late morning trade, shares of Bank of Baroda declined 3.10 per cent to Rs 207.55 apiece and plunged further to Rs 207.20 apiece, registering a 3.27 per cent fall during the day on the BSE.

On the NSE, the stock of the company dived 2.96 per cent to Rs 207.95 per piece and went lower by 3.22 per cent to close at Rs 207.40 per scrip.

In the volume terms, 12.69 lakh equity shares were traded on the BSE, while 4.30 crore shares were on the NSE, during the day.

The 30-share BSE Sensex rose 393.69 points to close at 66,473.05, while NSE Nifty gained 121.50 points to settle at 19,811.35.

In a statement on Tuesday, the Reserve Bank of India said it "has, in the exercise of its power, under Section 35A of the Banking Regulation Act, 1949, directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the 'bob World' mobile application".

However, the public sector lender said it has already carried out corrective measures to address the concerns of the central bank and has initiated further steps to plug any remaining gaps.

"We will work closely with the RBI to address their concerns at the earliest to their satisfaction," the bank added.

Also, the lender assured its customers they would not face any disruption and would continue to experience uninterrupted services on the mobile app.