BANK OF BARODA (UK) LIMITED

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  Material uncertainty over going concern

  Following the strategic review of the Bank's operations in 2023, and the subsequent approval of the strategy to wind down the operations of the Bank by the regulators, the accounts have been prepared under a non-going concern basis as the Bank continues to implement its SWD strategy. The strategy is under constant review to ensure that the Bank remains solvent throughout the process of winding down. As per the SWD strategy, the Bank will wind down its operations and apply for the revocation of its banking licence. Once the revocation of the licence is approved by the regulators, the Bank will pursue a solvent liquidation.

Accounting basis

FRS 102

Reporting scope

Standalone (parent only)

Auditor

Forvis Mazars LLP

Audit opinion

Unqualified (clean)

Going concern

Material uncertainty disclosed

“Following the strategic review of the Bank's operations in 2023, and the subsequent approval of the strategy to wind down the operations of the Bank by the regulators, the accounts have been prepared under a non-going concern basis as the Bank continues to implement its SWD strategy. The strategy is under constant review to ensure that the Bank remains solvent throughout the process of winding down. As per the SWD strategy, the Bank will wind down its operations and apply for the revocation of its banking licence. Once the revocation of the licence is approved by the regulators, the Bank will pursue a solvent liquidation.”

Significant events

• “The year has seen the Bank continued to execute the Bank's strategic decision to pursue Solvent Wind Down (SWD) in alignment with Bank of Baroda Group's international strategy and in consultation with our regulators.”
• “The Bank achieved a significant milestone by successfully addressing all key findings. As a result, the Bank was formally removed from the regulatory watchlist and the requirements under Section 166 review were lifted during the year.”
• “Significant progress was made on the establishment of a Trust arrangement to safeguard unclaimed customer balances during the SWD process. The Trust formation approach was agreed in principle with the PRA and FCA, following which the draft Trust Deed and related documents were submitted for regulatory review.”
• “After March 2024, several former employees made redundant filed claims against the Bank, citing breaches of redundancy terms under the 1993 Security Agreement and various forms of discrimination, following the Bank's decision to decline an ACAS conciliation offer. While a few claimants have proceeded to tribunal hearings, others are anticipated to pursue claims in the County Court based on tribunal outcomes.”
• “The Bank is also a second defendant in a suit where it has acted as a collection agent in a commercial transaction. The plaintiff is claiming for a breach of contract and is seeking an order to compel the Bank to pay the outstanding sum of $1,014,396.20 as well as interest at 18% p.a.”
• “After the year end, the leases for three of our closed branches namely: Kenton, Wembley and Birmingham were fully surrendered. The liabilities from these activities were settled from the prior provisions made for in the accounts. Prior to the signing of the accounts, the Bank received a credit liquidity guarantee of $50m from the Parent Bank.”

Auditor, going-concern and subsidiary information is drawn from the narrative of the latest annual accounts. About these numbers

Filings

7

last 12 months

Capital events

2

last 24 months

Officers appointed

0

last 12 months

Officers resigned

1

last 12 months

Direct counts from the register. No score, no rating — see the Filing timeline for the underlying events.