Public sector lender, Bank of Baroda has decided to sell 51% stake of its credit card subsidiary Bobcards to Spain based BBVA. The two entities have inked a memorandum of understanding (MOU) in this regard. The deal has been finalized for 34 million euros.

The entities have received necessary approvals from their respective regulators, Reserve Bank of India and Bank of Spain in this regard. This happens to be the first entry of the Spanish bank into the retail banking market of India.

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.