Question

WHY BANK OF BARODA TO SHUT DOWN ITS OPERATIONS IN SOUTH AFRICA?

Answer 1

The bank’s South Africa operation is mired in controversy over its relationship with the Gupta brothers, who hail from Saharanpur in India and are accused of having corrupt links with the country’s former president Jacob Zuma. Zuma was recently ousted by his African National Congress party and replaced with Cyril Ramaphosa.

“We are aware that eight companies of the group have gone under business rescue and business rescue practitioners have been appointed,” said Eric Tucker, general manager, head of international banking at Bank of Baroda. “The exposure to the Gupta entities is a confidential matter. However, in the context of BoB’s size, the exposure is not very material and does not impose any significant risk on us. We are adequately covered in the accounts under business rescue and have a detailed plan for recovery in the accounts. As of now we remain confident of our ability to recover our dues.”