Bank of Baroda divests 49% stake in Credit Card Subsidiary

Current context: Bank of Baroda holds 100% stake in the credit card subsidiary at present. BoB is planning to divest 49% stake on its subsidiary, Bank of Baroda Financial Solutions (BFSL) as a strategic solution. The financial institution is a Mumbai-based lender. The bank wants to grow its credit card business with this step.

• A timeline of 12 months is taken to partner with an organization for the process of disinvestment.
• ICICI Securities is the advisor for Bank of Baroda.
• By the end of March 2023, a credit of Rs.3500crores is expected.
• Card in force and credit expected by March 2024 is Rs.5500crores.
• In FY2022 and FY2023, the growth of BFSL is Rs.300 crore and Rs.100 crore respectively.

Question: 

Q.1 Bank of Baroda is planning to divest ______stake on its subsidiary, Bank of Baroda Financial Solutions (BFSL)

a. 24%
b. 40%
c. 49%
d. 50%