Govt likely to up its stake in Nabard to 99 per cent
The Centre is likely to up its stake in Nabard to up to 99 per cent by acquiring the Reserve Bank's stake in it for Rs 1,450 crore in the current year, a top Nabard official said.
By PTI |
MUMBAI: The Centre is likely to up its stake in Nabard to up to 99 per cent by acquiring the Reserve Bank's stake in it for Rs 1,450 crore in the current year, a top Nabard official said.
The Reserve Bank currently holds 72.5 per cent in the National Bank of Agriculture and Rural Development (Nabard) while the remaining is with the Government.
"The Government might have a 99 per cent shareholding in NABARD. The RBI will still hold one per cent in the bank," the bank's Managing Director, K G Karmakar, told media on the sidelines of an event here.
However, the Government is currently awaiting approval from Parliament on the same, Karmakar said, adding that the change in stake-holding would not in any way impact the bank's regular business and functioning.
"It won't affect the functioning. It will be business as usual. The present 15 member Board will have 12 officials from the Goverment and the rest from the apex bank," he said.
The development is in line with the Narasimham Committee recommendations on banking sector reforms, that recommended the transfer of RBI's stake in SBI, Nabard and National Housing Bank to the Government to differentiate the central bank's role as the owner of banks and the sector regulator.
The Reserve Bank currently holds 72.5 per cent in the National Bank of Agriculture and Rural Development (Nabard) while the remaining is with the Government.
"The Government might have a 99 per cent shareholding in NABARD. The RBI will still hold one per cent in the bank," the bank's Managing Director, K G Karmakar, told media on the sidelines of an event here.
However, the Government is currently awaiting approval from Parliament on the same, Karmakar said, adding that the change in stake-holding would not in any way impact the bank's regular business and functioning.
"It won't affect the functioning. It will be business as usual. The present 15 member Board will have 12 officials from the Goverment and the rest from the apex bank," he said.
The development is in line with the Narasimham Committee recommendations on banking sector reforms, that recommended the transfer of RBI's stake in SBI, Nabard and National Housing Bank to the Government to differentiate the central bank's role as the owner of banks and the sector regulator.
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