Bank of Baroda said it fully cooperated with South African authorities regarding investigations relating to the politically connected Gupta family.
The bank's statement comes after South African police raided the lender's Johannesburg and Durban branches as part of investigations into alleged influence-peddling under former South African President Jacob Zuma, Reuters reported June 9, citing Hangwani Mulaudzi, a spokesman for the police.
During the raid, police took documents showing bank transactions involving South African state firms, Mulaudzi said, noting that the police believe Bank of Baroda was used for the transfer of illicit funds.
Bank of Baroda clarified in the statement, which was posted on its website, that the police's search and seizure operation was not to investigate the bank, but rather in relation to the ongoing investigation of the Gupta family.
Gupta family representatives in South Africa could not be reached for comment, Reuters reported.
The Gupta family is said to have close ties to Zuma and was accused of exerting influence over state affairs and the award of government contracts to Gupta-owned companies.
In September 2017, South Africa's central bank imposed an 11 million rand fine on Bank of Baroda over the violation of anti-corruption and anti-money laundering rules in helping the Gupta family purchase the Optimum coal mine. The lender decided to close accounts linked to the Gupta family after it was hit with the fine.
Bank of Baroda is now in the process of winding down its South African operations after ceasing all banking activities as of April 1.
The bank said that it will continue to have a physical presence in South Africa until the conclusion of the regulatory investigations.
As of June 8, US$1 was equivalent to 13.09 South African rand.
