Source: BL
Context:
Bank of Baroda (BoB) has shelved its plan to divest majority shareholding and relinquish control in its subsidiary Nainital Bank Ltd (NBL). The decision marks a shift from its earlier intent to offload stake and exit the subsidiary.
Background:
- Nainital Bank Ltd (NBL) is a regional private sector bank headquartered in Nainital, Uttarakhand.
- It was established in 1922 and became a subsidiary of Bank of Baroda in 1973, with BoB holding a 98.6% stake.
- BoB had earlier been exploring options to divest its controlling stake in compliance with RBI’s directive to reduce ownership in subsidiaries.
About Nainital Bank Ltd:
- Headquarters: Nainital, Uttarakhand
- Established: 1922
- Subsidiary of: Bank of Baroda (since 1973)
- Business Focus: Retail, MSME, and regional banking in northern India
- Ownership: 98.6% held by Bank of Baroda
