Cashing in on the increasingly lucrative business ties between India and other African countries, Bank of Baroda, the third largest public sector bank is planning to acquire a bank in Botswana.
This will be bank?s first overseas acquisition and size of the deal is expected to be around $100 million. The bank which calls itself as India international bank has already got a subsidiary in Botswana. The bank will acquire the new bank through this subsidiary.
The bank had appointed a consultant to find out the right buy and preliminary exercise to close the deal is already done, said sources who are know of the development. However, N Srinatah, ED , BoB said, ?Nothing specific has been concretised. But a growing bank like us will always avail such an opportunity.?? Earlier, MD Mallya, CMD, BoB had said the bank was open to overseas acquisition if a good opportunity comes across.
?I am positive to it (acquisition) if there is a good opportunity in terms of valuation and strength,? he said. Despite the downturn, the bank?s overseas business contributed 23% to net profit and 22.5% to the bank?s total business.
BoB had infact started its overseas journey by opening its first branch way back in 1953 in Mombassa, Kenya. Since then the bank has come a long way in expanding its international network to serve NRls/PIOs, Indian corporates around the world and to meet the banking requirements of the local population in the country of operation.
The bank has significant international presence with a network of 82 branches/ offices in 26 countries, including 51 branches/offices of the bank, 28 branches of its 8 Subsidiaries and 3 Representative Offices in Malaysia, Thailand & Australia. Botswana is gaining importance for Indian banks as two more banks SBI and BoI are also planning to set up operations in the country.