In mid-December Bank of Baroda announced it will close down three overseas branches by June.
Public sector banks (PSBs) are in the process of closing or rationalising about 69 overseas operations in the next few months as part of their capital conservation exercise, says a report by PTI.
A total of 216 overseas operations of the public sector banks (PSBs) were selected for rationalisation last year, sources told PTI. Following the review, as many as 35 overseas operations were closed while 69 are under process or being considered for rationalisation, they added.
The report said the rationalisation considerations rose out of the unviable foreign operations.
Besides, multiple branches in same cities or nearby places are being rationalised with a view to achieve efficiency, sources were quoted as saying.
In mid-December Bank of Baroda announced it will close down three overseas branches by June. As per it, these three branches contribute less than a percentage each to the bank’s consolidated business.
By December end, there were a total of 165 overseas branches of PSBs.
State Bank of India (SBI) has the largest number of overseas branches (52) followed by Bank of Baroda (50) and Bank of India (29).
The state-owned banks have the largest number of branches in the UK (32) followed by Hong Kong and the UAE (13 each) and Singapore (12).
Rationalisation of public sector bank (PSB) branches is part of the government’s initiative, approved on November 2017 as clean and responsible banking initiative.
Source: Businessline, Mint