Bank of Baroda looking at acquisitions in South Africa

Mumbai, Nov 23 | Updated: Nov 24 2005, 05:59am hrs
After the State Bank of India (SBI), it is now Bank of Baroda (BoB), which is warming up for international acquisition. It has put the African continent on the radar, as it is a known territory for the bank with highest presence among Indian banks in terms of branches and subsidiaries. According, to sources familiar with the developments, South Africa, Ghana and Sudan are some of the countries in the continent BoB is looking for small and mid-sized banks to acquire.

The value of the deal would range between $15-20 million. The bank officials have confirmed the development. Speaking to FE, AC Mahajan, executive director, BoB, said, We are open to such opportunities and we are looking to identify potential areas in the African continent, where Indian banks are not well represented and BoB can look for acquisition after proper due diligence in future. The survey for such an opportunity would commence soon.

Mr Mahajan, however, declined to comment on the possible size or timeline for such acquisition. It is too early to comment on that, he said. Currently, the bank is present in African countries like Kenya, Uganda, Tanzania, Arusha, Botswana, South Africa, Mauritius and Seychelles with its branches and subsidiaries. In Zambia, the bank is involved in a tripartite venture with Central Bank and BoI. The bank has in total, 59 branches and subsidiaries across the globe. The banks scrip closed at Rs 235.05 on Wednesday on the Bombay Stock Exchange (BSE), up by 1.12% to Rs 232.45 and it has gained by 8.07% over the last one month.

African Safari

South Africa, Ghana and Sudan are some countries the bank is looking at for acquisitions
BoB has a strong presence in Africa with 59 branches and subsidiaries
It is aiming to acquire small and mid-sized banks