BoB scouts for African bank for acquisition

Bank of Baroda (BoB) has drawn up an extensive overseas expansion plan, which includes acquisition of an African bank, increasing the number of overseas branches to 70 and opening a representative office in Australia.

"We are looking for some good banks in Africa for acquisition," BoB Chairman and Managing Director Anil K Khandelwal said.

To fund increasing foreign operations and meet Basel II obligations, the BoB will shortly raise $250 million through Upper Tier-II bonds from offshore market.

Among the Indian banks, BoB is strongest in Africa, Khandelwal said, adding that it has branches in South Africa and subsidiaries in Kenya and Tanzania.

In addition, the bank is also present in Botswana, Zambia and Uganda and proposes to set up a subsidiary in Ghana by the end of June.

In the next few months, he said, the bank will open a branch in Johannesburg and increase the number of branches of its subsidiaries in Kenya and Tanzania.

Besides expanding in Africa, it plans to set up a subsidiary in Trinidad & Tobago and open a Representative Office in Australia in next four months, Khandelwal said.

The bank will be expanding in the UK by opening its 9th branch shortly and begin electronic banking in Jablali, a duty-free zone in UAE. BoB has already obtained a licence to operate electronic-banking in Jablali, he said.

By the end of March 2008, Khandelwal said the BoB will have a network 70 overseas branches/offices.