BoB to merge its associate bank

Posted: 2006-07-25 00:00:00+05:30 IST
Updated: Jul 25, 2006 at 0000 hrs IST

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Mumbai, July 24: State-run Bank of Baroda (BoB) has said it would merge one of its associates - Uttaranchal-based Nainital Bank Ltd (NBL) - with itself. Nainital Bank was earlier acquired by BoB.

"The board of directors of the bank has accorded its ‘in-principle approval’ for the merger of Nainital Bank Ltd with the bank, subject to further approvals, ratifications or formalities as may be needed in this regard as per the Reserve Bank of India (RBI) directives," the government-owned bank informed BSE on Monday.

The net worth of NBL is around Rs 100 crore, far less than the RBI’s mandated net worth of Rs 300 crore. The bank had planned to come out with an initial public offering to increase its net worth. BoB currently holds about 98.6% in the bank.

Nainital Bank was founded by Govind Ballabh Pant, the first CM of Uttar Pradesh after independence. NBL has about 72 branches in Uttaranchal, Uttar Pradesh, Delhi, Haryana and Rajasthan.

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BoB to merge its associate bank

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