Standard Bank Ghana (Stanbic), a subsidiary of Standard Bank South Africa, has taken over customers and assets of the local subsidiary of Indian-state lender, Bank of Baroda under an arrangement that comes at no cost to the former.
Multiple sources involved in the arrangement say the transaction was sealed in the tail end of December 2018, paving the way for Baroda to officially wind up its operations in Ghana on December 31.
The transaction has since been approved by Ghana’s central bank and an official announcement is due today, 2 January 2019.
The move automatically ensures that the Stanbic Bank Ghana acquires customers of Baroda, in a smooth migration that allows the bank to walk away without distraction to its customers and the banking system.
Baroda now becomes the first bank to have voluntarily liquidated in Ghana.
The bank resolved to wind up its operations in Ghana around August 2018 to avoid raising the GH400 million minimum capital, which it says its operation in the West African country does not require.
Baroda, which started operations in 2008, was servicing mainly Indian customers and was considered one of the profitable banks in the country.