Last Updated: 2018-02-13
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NEW DELHI, India Feb 13 (NNN-Bernama) -- India's Bank of Baroda, one of the country's top public sector banks, has shut down its operations in South Africa as part of what it said a plan for "rationalisation of overseas branches."

The bank, which has been in the news over holding accounts related to the controversial Gupta family in South Africa, said in a statement on Monday its South African business "is not very significant" and the exit "will not have any major impact on the financials".

The South African Reserve Bank (SARB) said it was working with the Indian bank for an orderly withdrawal.

"The Bank of Baroda has notified the Office of the Registrar of Banks of its exit from South Africa. The Registrar, which is part of the South African Reserve Bank (SARB), is in discussions with the Bank of Baroda to ensure its orderly withdrawal from South Africa so that no depositor is disadvantaged," the South Africa central bank said on Monday.

The Indian bank was earlier investigated over its dealings with the accounts linked to the politically-connected three Gupta brothers, who have been accused of influencing government decisions in South African using money.

The Guptas have denied the allegations.

Bank of Baroda said in a statement on February 6 that it was cooperating with the South African regulators and supporting their investigations into the Gupta matter.

The bank's Johannesburg-based unit was fined 11 million rand (about US$920,000) last year and told to improve its compliance with South Africa's regulations.--NNN-BERNAMA