Bank of Baroda Shares Plunge 3%

Shares of state-owned lender Bank of Baroda plunged 3 per cent in the late morning trade on Wednesday.

This comes after the Reserve Bank of India on Tuesday barred Bank of Baroda from onboarding new customers on its mobile app 'bob World' following material supervisory concerns.

The action taken by the central bank is based on certain material supervisory concerns observed in the manner of onboarding customers onto its mobile application.

The stock of the company declined 3.10 per cent to Rs 207.55 apiece on the BSE.

On the NSE, Bank of Baroda's shares dived 2.96 per cent to Rs 207.95 per piece.

Meanwhile, the 30-share BSE Sensex surged to 66,488.21 points, while the NSE Nifty rose to 19,799.50 points.

In a statement on Tuesday, the Reserve Bank of India said it "has, in exercise of its power, under Section 35A of the Banking Regulation Act, 1949, directed Bank of Baroda to suspend, with immediate effect, any further onboarding of their customers onto the 'bob World' mobile application".

However, the public sector lender said it has already carried out corrective measures to address the concerns of the central bank and has initiated further steps to plug any remaining gaps.

"We will work closely with the RBI to address their concerns at the earliest to their satisfaction," the bank added.

Also, the lender assured its customers they would not face any disruption and would continue to experience uninterrupted services on the mobile app.