Keeping Baroda in SA

NEDBANK HAD MADE IT CLEAR THAT IT WANTED TO TERMINATE THE RELATIONSHIP BEFORE JUNE 3

India took the decision to exit the South African banking sector on December 22 2017 at a time when its relationship with Nedbank “had become tense”.

Baroda had expected an exit period of six months and an exit date of June 30 2018.

He said the MD and CEO of Baroda India and the GM of international operations had visited SA in mid-January to meet urgently with the South African Reserve Bank and Nedbank to inform them of the decision.

It was at this meeting that Nedbank had made it clear it wanted to terminate the relationship before June 30.

On February 1, Nedbank informally advised the Baroda SA branch that it would terminate the relationship and gave three months’ notice, and Baroda India formally notified the registrar. The Nedbank termination notifications were delivered on February 2.

Jha said the closure of the South African branch was “irreversible”. He said the branch “could never trade sustainably in SA now having announced and commenced its closure.”