Public sector Bank of Baroda (BoB) plans to sell its stake in Nainital Bank. Bank of Baroda has decided to sell stake after 50 years of acquisition of this bank.
Bank of Baroda informed the stock market that the board of directors has approved the disinvestment of its majority stake in Nainital Bank Limited (NBL). Explain that Bank of Baroda holds 98.57 percent of the total equity share capital in NBL.
Bank of Baroda also plans to invite Expression of Interest (EOI) from interested parties to buy the stake. Information about the process of the transaction will be given through a Preliminary Information Memorandum (PIM).
Stake bought in 1973:
Mumbai-based Bank of Baroda acquired Nainital Bank in 1973 on the instructions of the Reserve Bank of India (RBI). Nainital Bank has around 150 branches in Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan. However the bank was established in 1922 and has now 100 years of existence.
Share condition:
After this news, on the third trading day of the week i.e. on Wednesday, the share price of Bank of Baroda closed down by 0.75%. The share price stood at Rs 191.60 as compared to a day earlier. The share price had touched a high of Rs 194.95 and a low of Rs 191 during the trading session.