Bank of Baroda Pauses Nainital Bank Divestment Plan

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