State-run Bank of Baroda has agreed to sell its business in the Caribbean nation of Trinidad and Tobago as part of efforts to rationalise its international operations and sharpen focus at home.
The lender will sell Bank of Baroda (Trinidad & Tobago) Ltd to ANSA Merchant Bank Ltd, it said in a stock-exchange filing. It didn’t disclose financial details of the deal.
Bank of Baroda started operations in Trinidad and Tobago in October 2007. It has three retail branches in the country, in Port of Spain, San Fernando and Chaguanas, that offer loans to both retail and corporate clients. The bank’s overall business in the dual-island nation is around 500 million Trinidadian dollars, or about US$74 million.
Bank of Baroda had said in December last year that it would rationalise its global presence, increase efficiency and profitability of its overseas offices, and close branches in Guyana, Trinidad and Tobago and Ghana as per the government’s guidelines. The rationalisation of its overseas business comes after its domestic merger with two other state-owned banks – Dena Bank and Vijaya Bank — in April this year.
The bank’s annual revenue from the Ghana business stood at Rs 75.31 crore, Trinidad and Tobago at Rs 23.90 crore and Guyana at Rs 26.38 crore, it had said last year.
For ANSA Merchant, the transaction will extend its offerings into commercial and retail banking from the current auto financing and asset finance. Previously, it focussed on investment banking and investment management services.
ANSA Merchant Bank is a subsidiary of ANSA McAL Ltd, which is Trinidad and Tobago’s largest conglomerate by profit. The group also offers insurance services through Trinidad & Tobago Insurance Ltd.
Other banks in the dual-island nation include CIBC FirstCaribbean International Bank, Citibank, First Citizens Bank, RBC Royal Bank, Republic Bank, JMMB Bank and Scotiabank, the statement said.
The transaction between Bank of Baroda and ANSA is subject to approval from the Central Bank of Trinidad & Tobago.
Investment bank Singhi Advisors and its Latin American partner BroadSpan Capital advised ANSA Merchant Bank on this transaction.