Country?s third largest public sector lender Bank of Baroda today entered the New Zealand market by incorporating a wholly-owned subsidiary in the country.
The Reserve Bank of New Zealand has given approval to its wholly-owned subsidiary to be registered as bank in New Zealand, Bank of Baroda said in a filing to the Bombay Stock Exchange.
After completion of the remaining formalities and creation of necessary infrastructure, the subsidiary– Bank of Baroda (New Zealand) Ltd, would commence branch operations in that country, it said Shares of Bank of Baroda today closed at Rs 438.05 on the BSE, up 1.08 per cent from previous close.
Meanwhile, rating agency Fitch affirmed investment grade ?BBB-? to Baroda (New Zealand) Limited (BOB NZ).
BOB?s ratings reflect its well-established domestic franchise, diversity of its operations and improved financial which should help it manage asset quality deterioration, Fitch said in a statement.
As with other large government banks in India, BOB?s corporate loans comprise the largest sectoral exposure, it said, adding, as Indian corporates? debt repayment capacities have been affected in this economic slowdown, BOB?s asset quality would remain under pressure in FY10.