BoB clarifies decision to close Al Ain branch in UAE was taken last year; refutes social media rumors

Bank of Baroda

State-run Bank of Baroda (BoB) in an official statement on February 26, 2023, clarified that the bank had taken a commercial decision to close its Al Ain branch in UAE with effect from March 22, 2023, following approval from the Central Bank of UAE. The lender had taken the decision to close this branch last year, it said. "To ensure the smooth continuation of services, all accounts currently maintained at the Al Ain branch are being transferred to the Bank's Abu Dhabi branch in UAE," BOB said in its official statement.

Bank further noted that those customers who wish to close their account/s may do so before March 22, 2023, without incurring any charges or penalties. "Customers are accordingly visiting the Al Ain branch to provide the necessary consent/ give further instructions with regard to their account/s in Al Ain branch," the bank further added in its statement.

The clarification came amid a photo circulating on social media that claimed that crowds queueing up at the Bank of Baroda Al Ain Branch, UAE to close their accounts, after the statement by its CEO Sanjiv Chadha, that bank will still fund Adani companies. The bank appealed to public not to believe in ‘misleading and false information’ being spread on social media.

BOB MD on Adani exposure

BoB MD and CEO Sanjiv Chadha on February 3 told Moneycontrol that his bank will continue to lend to the Adani group if the group account meets the lender's underwriting criteria.

“For us, any lending decision is based upon, again, the assessment of risk and the return on that particular exposure. I don't think we will be changing that at all. Anything that meets our underwriting criteria is a lendable proposition for us,” Chadha said.

There have been speculations about banks’ exposure to Adani group companies after the group plunged into a crisis following a short-seller research report. But, the major banks and the RBI have clarified that banks’ exposure to Adani is within regulatory limits and there are no systemic concerns.