Nainital Bank raises Rs 100 cr via rights issue to meet future requirements

Nainital Bank, a subsidiary of public sector lender Bank of Baroda (BoB), on Monday said it has raised around Rs 100 crore through a rights issue to meet future capital requirements.

BoB holds 98.57 per cent stake in Nainital Bank.

The amount was raised on March 29, 2023, Nainital Bank said in a statement.

Nainital Bank has a presence in Uttarakhand, Uttar Pradesh, Delhi & NCR, Rajasthan and Haryana with 168 branches, it said.

The bank's business touched the Rs 12,305-crore mark as on March 31, 2023. Net NPA stood at 2.50 per cent, Provision Coverage Ratio at 80 per cent and Capital to Risk Assets Ratio (CRAR) at 16 per cent as per latest figures (unaudited), it said.

The board of BoB in December approved a proposal to sell its majority stake in Nainital Bank.

Mumbai-based BoB had taken over Nainital Bank in 1973 on the directions of the Reserve Bank of India.