GEORGETOWN: Bank of Baroda looking to expand operations in Guyana

GEORGETOWN: India-owned Bank of Baroda is
looking to expand its operations locally, a turnaround lauded by Finance
Minister, Dr Ashni Singh, since, only a few years ago, the bank was looking to
exit Guyana.
This revelation was made on Wednesday during a ceremony at the Arthur Chung
Conference

Centre (ACCC) to confirm Bank of
Baroda’s status as a mortgage lender. The bank’s Managing Director, Arun Gupta,
observed during his presentation that the bank has multiple branches in
countries all over the world, but not in Guyana.

“We are in the process of
considering expanding our product offerings. And we will be opening a few
branches in the near future. That proposal is also under consideration. The
Bank of Baroda is majority-owned by India,” Gupta said. “We have 10 branches in
the United Kingdom. We have branches in Belgium, Singapore, Dubai.

 In African continent we have in Zambia, Kenya,
Uganda. (We have) branches in Australia, New Zealand, Fiji.
“So, it’s a very big bank, but in Guyana we are very small in size, just two
branches. But shortly we will be expanding that.”
It is a stunning turnaround, considering that the Bank of Baroda was on the
verge of exiting Guyana’s market back in 2018.
In his presentation during the event, Minister Singh lauded the bank for its decision
to maintain its presence in Guyana.

“I am delighted that we have
moved from a place where, just two years ago, the conversation was about
whether Bank of Baroda would be closing and withdrawing from Guyana. A bank,
mind you, that has been here since Guyana became independent.
“I am delighted that we have moved to a point where the bank is now firmly
present in Guyana, and is looking to expand its presence in Guyana, including
by introducing new products and engaging in new partnerships,” Minister Singh
said.

According to the Minister, the
Indian High Commission was integral in the bank’s decision to remain in Guyana.
In fact, the event featured the presence of current High Commissioner of India
to Guyana, Dr KJ Srinivasa.
“We’re extremely pleased that the High Commission intervened when it did and
made the necessary interventions on how attractive Guyana is from the point of
view of potential growth opportunities, and that the senior management and head
office of the bank was persuaded to remain open in Guyana,” the Finance
Minister said.

With the signing of Wednesday’s
agreement, Bank of Baroda will now be able to provide mortgage financing to
homeowners by being designated as an approved Mortgage Finance Company in
keeping with Section 15 of the Income Tax Act, Cap 81:01.

It was only last week that the New Building Society (NBS), which is already
known for its low mortgage interest rates, announced a reduction in its
interest rates. These twin measures are expected to open up increased
opportunities for homeowners to get affordable mortgages.
NBS was also presented with approval to raise its loan ceiling from $12 million
to $15 million, in keeping with one of the measures outlined in the 2021 budget
by the People’s Progressive Party (PPP) Government.

The increase in the loan ceiling
is only one of several measures the Government is pursuing in a bid to
re-energise an economy stunned by the COVID-19 pandemic, while at the same time
presenting homeowners with more options in relation to borrowing funds.
Since coming to office, the Government has made it clear that it intends to
fulfill its manifesto promise to distribute 50,000 house lots over the next
five years. It had allocated $6 billion for enhancing infrastructure in existing
housing areas in the 2021 budget.

A significant sum has also been
set aside for improving water service and developing new wells.