Mumbai: State owned Bank of Baroda on Wednesday signed a Memorandum of Understanding (MOU) to sell 51% in its existing credit card subsidiary Bobcards to Spain based BBVA for €34 million, both banks said in a media release.
The venture is subject to Reserve Bank of India (RBI) and Bank of Spain’s approval and is the first foray for the Spanish lender in the Indian retail market.
Manuel Galatas, Managing Director, Asia , BBVA said, the alliance “is consistent with their strategy of entering new markets through relationships with a leading local partner.”
“The joint venture will leverage upon the 36 million customer base of Bank of Baroda spread over more than 3200 branches. Credit card spending is projected to grow at 20% and the joint venture company aspires to become one of the top players in this growing business”, said MD Mallya, chairman and managing director, Bank of Baroda.