Up to 49% of the government-owned Bank of Baroda’s ownership stake in the credit card division, BOB Financial Solutions Ltd., will be sold. BoB presently owns all of the company.
According to a senior bank official, the process to bring on a strategic investor would take place through a Request for Proposal that the bank has issued.
To add value to BOB Financial Solutions and further its expansion, the company plans to offload up to 49% in a combination of main and secondary capital from one or more investors, the official said.
BOB Financial more than doubled the acquisition of new credit cards by issuing around 1.2 million credit cards in FY23 as opposed to 0.5 million the year prior.
As per the BoB’s annual report, “Retail spends too more than doubled compared to FY 2022, clocking in at approximately Rs 17,300 crore (compared to Rs 7,000 crore in FY 2022).”
In addition, the NBFC’s net profit increased by almost 100% to Rs 24.62 crore from Rs 10.07 crore in the same period last year.
BOB Financial Solutions Ltd, originally BOB Cards Ltd, is a non-banking financial organization and a wholly owned subsidiary of BoB.
The company was founded in 1994, provides a wide range of consumer and business credit cards to meet the demands of all customer segments, including but not limited to everyday shopping cards, travel cards, and business cards for both large corporations and MSMEs.
Credit card issuance is its primary activity, and what distinguishes it from the competition is the availability of simple, understandable products that are affordably priced, swiftly processed, and easily obtained.
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