Bank of India shuts down operations in Jersey

State-run Bank of India has closed down its Jersey branch, following instructions from the Finance Ministry to wind up non-viable operations overseas.

The closure took effect on 18 October following the approval of the Jersey Financial Services Commission.

“This is to inform that Jersey Financial Services Commission (JFSC), Local Regulators Jersey, has allowed the closure of our Jersey branch with effect from October 18, 2018,” BoI said in a regulatory filing.

Earlier, the bank had also closed down its operations in Yangoon, Bostwana and Dubai. As per the Bank of India website, it has overseas operations in Japan, Singapore, the UK, Vietnam, France, Kenya, the US, Uganda, Hong Kong, New Zealand, Tanzania and South Africa.

PSBs have closed down 35 overseas branches and representative offices as part of the “clean and responsible banking” initiative. Andhra Bank, IDBI Bank and Indian Overseas Bank closed down Dubai operations, while Punjab National Bank, Canara Bank and Union Bank of India shut their Shanghai offices, according to the indian news agency PTI.

Following the banking sector agenda approved at the PSB Manthan in November last year, public sector banks (PSBs) have to examine all 216 overseas operations.

Before this initiative, public sector banks had 165 overseas branches, besides subsidiaries, joint ventures and representative offices. State Bank of India had the largest number of overseas branches (52) followed by Bank of Baroda (50) and Bank of India (29).

The State-owned banks have largest number of branches in United Kingdom (32) followed by Hong Kong and UAE (13 each) and Singapore (12).

The initiative was put forward by the Indian government in the wake of jewellery designer Nirav Modi allegedly cheating Punjab National Bank (PNB) out of millions with the help of PNB staff and officials of overseas branches of other state-owned banks.

Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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