Bank of Baroda (BoB) said that its board has approved a proposal to divest up to 49% of the bank's shareholding in its wholly owned subsidiary BOB Financial Solutions (BFSL).
The board has also approved issuance of an advertisement inviting expressions of interest (EOI), from suitable investors / strategic partners to acquire shareholding of BoB in BFSL.
BoB currently holds 100% of the total equity share capital of BFSL.
BFSL was incorporated in 1996 as a wholly owned subsidiary of Bank of Baroda. It is one of the two standalone NBFCs allowed to issue credit cards by RBI. As of Dec-22, Mumbai-based BFSL had 17.5 lakhs cards in force and total spends of Rs 12,155 crore for 9MFY23.
For 9MFY23, BFSL's active cards in force aggregated to 17.5 lakh and for the same period, new cards issued added up to 9.3 lakh.
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BFSL has recorded net loss of Rs 14 crore and total income of Rs 596 crore in the nine months ended December 2022.
Bank of Baroda is one of India's largest banks with a strong domestic presence spanning 8,178 branches and 11,456 ATMs and cash recyclers supported by self-service channels. The bank has a significant international presence with a network of 94 overseas offices spanning 17 countries. As of 31 December 2022, Government of India held 63.97% stake in the bank.
The bank's net profit jumped 75.4% to Rs 3,852.74 crore on 32.27% rise in total income to Rs 27,092.09 crore in Q3 FY23 over Q3 FY22.
The scrip fell 2.39% to currently trade at Rs 167.40 on the BSE.
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