State-owned Bank of Baroda (BoB) on Thursday said its board has approved selling up to 49% stake in wholly-owned subsidiary BoB Financial Solutions Ltd (BFSL).
“We advise that the board of directors of Bank of Baroda have approved for divestment up to 49 % of Bank’s shareholding in its 100% owned subsidiary i.e. BoB Financial Solutions Ltd, and issuance of an advertisement inviting expressions of interest from suitable investors and strategic partners to acquire shareholding of BoB in BFSL," it said in a filing to the stock exchanges.
BoB Financial Solutions (earlier known as BoBcards Ltd)
BoB Financial Solutions (earlier known as BoBcards Ltd) entered India’s credit card market in 1994, four years before SBI Card was launched but lagged its peer and other lenders in card issuances. However, it has grown its base in the last few years owing to an aggressive push.
BOB Financial Solutions Limited (formerly known as Bobcards Limited) was established in the year 1994. It is a non-banking Financial Company, wholly owned by Bank of Baroda, one of the top banks of India. The Company’s primary business is credit cards and merchant acquiring.
BOB Financial offers an array of consumer & commercial credit cards and caters to all segments of customers with varied needs, including but not limited to everyday Shopping Cards, Travel Cards, Business Cards for large corporates as well as MSMEs. The company has exclusive credit cards for Defence Personnel including the Indian Army, Indian Navy, the Indian Coast Guard, Assam Rifles, professionals like ICAI, ICMAI & ICSI, co-branded cards with HPCL, Snapdeal, IRCTC, Premium Lifestyle cards like Eterna, Premier, and more such exciting variants. BOB Financial Solution’s key differentiator are easy-to-understand products that are fairly priced, efficiently serviced, and can easily be availed through the digital-all application process.
BOB Financial Solutions Limited is also the merchant payment processing partner of Bank of Baroda merchant acquiring business.
“We arrived too early. We arrived at a time when there was no Cibil (credit bureau). We were very aggressive when the ecosystem for the Indian context was not prepared for a credit card like product. There was a huge default and the management took a call to press the pause button,” Shailendra Singh, managing director and chief executive of BoB Financial Solutions Ltd had told Mint in an interview in November 2021.
On Thursday, the bank said that details about the process of transaction and other relevant details will be published on 10 March.
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Bank of Baroda is an Indian public sector bank headquartered in Vadodara, Gujarat. It is the second largest public sector bank in India after State Bank of India, with 132 million customers, a total business of US$218 billion, and a global presence of 100 overseas offices.