BoB Proposes to Sell Its Majority Stake in Nainital Bank

State-owned Bank of Baroda (BoB) said it plans to sell its majority stake in Nainital Bank. The board of directors of the bank has approved divestment of its majority shareholding in Nainital Bank Limited (NBL), and authorised issuance of an advertisement inviting Expressions of Interest (EOI) through a Preliminary Information Memorandum (PIM) from interested parties (IPs).

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BoB currently holds 98.57 per cent of the total equity share capital of NBL. Uttarakhand-based Nainital Bank has about 150 branches across Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan. The Mumbai-based BoB had taken over Nainital Bank in 1973 on the directions of the Reserve Bank of India (RBI).

About Bank of Baroda:

• Bank of Baroda is one of the leading commercial public sector banks in India. The Bank is having their head office located at Baroda and their corporate office is located at Mumbai.
• Bank of Baroda is one of India’s largest banks and as on December 2020 the bank has a strong domestic presence spanning 8246 domestic branches and 11553 ATMs & Cash Recyclers supported by self-service channels.
• The bank has a significant international presence with a network of 99 overseas branches/offices subsidiaries spanning 21 countries. The bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.) and BOB Capital Markets. Bank of Baroda also has a joint venture for life insurance business with India First Life Insurance.
• The bank owns 98.57% in The Nainital Bank. The bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.
• Bank of Baroda was incorporated on July 20 1908 as a private bank with the name The Bank of Baroda Ltd.