Bank of Baroda said that its board has approved the divestment of its majority shareholding in the Nainital Bank.
The board of the Mumbai-based bank has authorised issuance of an advertisement inviting expressions of interest (EOI) through a preliminary information memorandum (PIM) from interested parties (IPs).
The government backed lender currently holds 98.57% of the total equity share capital of Nainital Bank.
Nainital Bank NBL) was originally promoted by Late Bharat Ratna Pandit Govind Ballabh Pant and few prominent personalities of Nainital in 1922. In 1974, the Reserve Bank of India (RBI) directed Bank of Baroda to manage the affairs of NBL.
The RBI vide communique dated 26 April 2012, had granted NBL permission to open branches in -5- states namely, Uttarakhand, Uttar Pradesh, Delhi & NCR, Haryana and Rajasthan. Presently, NBL has 166 branches and 1,158 employees.
NBL had recorded total income of Rs 603 crore in FY22 as against Rs 642 crore in FY21. The net profit of NBL stood at Rs 28.93 crore as on 31 March 2022, against net profit of Rs 1.26 crore as on 31 March 2021. Gross NPA and net NPA aggregated to Rs 508 crore and 164 crore, respectively, as on 31 March 2022. The bank's deposits amounted to Rs 7,486 crore and advances were at Rs 3,917 crore as on 31 March 2022.
The bank's authorized equity share capital is Rs 150 crore (divided into 15 crore shares) and the issued, subscribed and paid-up capital was Rs 77.50 crore (divided into 7.75 crore shares) as on 31 March 2022.
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Bank of Baroda is one of India's largest banks with a strong domestic presence spanning 8,161 branches and 11,461 ATMs and cash recyclers supported by self-service channels.
The bank's net profit surged 58.7% to Rs 3,313.42 crore on 13.86% rise in total income to Rs 23080.03 crore in Q2 FY23 over Q2 FY22.
The scrip shed 0.44% to currently trade at Rs 192.20 on the BSE.
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