Mumbai: The Reserve Bank of India (RBI) on Wednesday said that it has divested its entire stake in Nabard and National Housing Bank (NHB) for ₹20 crore and ₹1,450 crore, on 26 February and 19 March, respectively.
Nabard is short for National Bank for Agriculture and Rural Development.
The divestment, RBI said, was based on the recommendations of the Narasimham Committee-II, and the discussion paper prepared by the central bank on harmonizing the role and operations of development financial institutions and banks. “With this, the government of India now holds 100% stake in both the financial institutions," RBI said.
The divestment in Nabard was done in two phases.
RBI held 72.5% of equity in Nabard amounting to ₹1,450 crore, of which 71.5% amounting to ₹1,430 crore was divested in October 2010. “The residual shareholding was divested on 26 February 2019. RBI held 100% 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 ₹1,450 crore, fully subscribed to by RBI.