The Reserve Bank of India has divested its entire stake in National Bank for Agriculture and Rural Development (Nabard) and National Housing Bank (NHB) amounting to Rs 20 crore and Rs 1,450 crore to the government. With this, the Centre now holds 100 per cent stake in both the financial institutions.
The divestment was done on February 26 and March 19 respectively, the RBI said. “Divestment of the RBI’s stake in Nabard and NHB has its basis in the recommendation of Narasimham Committee II and the Discussion Paper prepared by the RBI on “harmonizing the role and operations of development financial institutions and banks”, it said.
Divestment of the RBI’s shareholding in Nabard was done in two phases. The RBI held 72.5 per cent of equity in Nabard amounting to Rs 1,450 crore out of which 71.5 per cent amounting to Rs 1,430 crore was divested in October 2010 based on the government notification on September 16, 2010. The residual holding was divested on February 26, 2019. The RBI held 100 per cent shareholding in NHB, which was divested on March 19, 2019.