The Reserve Bank of India (RBI) on Wednesday said that it has divested its entire stake in two of its affiliates, the National Bank of Agriculture and rural development (Nabard) and the National Housing Bank (NHB) for Rs20 crore and Rs1,450 crore, respectively.

The divestment of stakes in Nabard and NHD, on 26 February and 19 March, respectively, was based on the recommendations of the Narasimham Committee-II, and the discussion paper prepared by the central bank on harmonising the role and operations of development financial institutions and banks.

“With this, the government of India now holds 100 per cent stake in both the financial institutions," RBI said.

The divestment in Nabard was done in two phases.

RBI held 72.5 per cent of equity in Nabard amounting to Rs1,450 crore, of which 71.5 per cent, amounting to Rs1,430 crore, was divested in October 2010. “The residual shareholding was divested on 26 February 2019. RBI held 100 per cent in NHB, which was divested on 19 March, 2019," it said.

According to NHB’s FY18 annual report, the equity share capital of NHB stood at Rs1,450 crore, fully subscribed to by RBI.

Published On : 26-04-2019

Source : Domain B