Bank of Baroda Shelves Nainital Bank Stake Sale
Why in the news
Bank of Baroda decided to hold back its proposal to exit Nainital Bank, reversing its earlier intention to sell off control.
Key facts
- Decision: Bank of Baroda (BoB) has paused divestment of majority holding in Nainital Bank Ltd (NBL).
- BoB’s current holding in NBL: 98.6%.
- The earlier plan to reduce its controlling stake was linked to an RBI directive on lowering ownership in subsidiaries.
About Nainital Bank Ltd
| Item | Detail |
|---|---|
| Type | Regional private sector bank |
| Headquarters | Nainital, Uttarakhand |
| Established | 1922 |
| Parent | Bank of Baroda, since 1973 |
| Focus | Retail, MSME and regional banking in northern India |
Exam angle
- HQ of Nainital Bank: Nainital, Uttarakhand.
- BoB stake: 98.6%; subsidiary since 1973.
- Regulator whose directive prompted the sale idea: RBI.