During the year, the Reserve Bank contributed Rs 400 crore towards its share of the equity in the National Bank for Agricultural and Rural Development (Nabard) for year 1997-98. Nabard's authorised capital is slated to be increased from Rs 500 crore to Rs 2,000 crore and the increase is to be jointly shared by the central government and the Reserve Bank through annual contributions of Rs 100 crore and Rs 400 crore, respectively, for three years commencing from 1996-97.

During the year, the central bank also contributed Rs 129.70 crore towards the equity capital of the Infrastructure Development Finance Corporation (IDFC) and a further Rs 350 crore towards the institution's subordinated debt. Pending the issueof shares and bonds, the contributions to the equity of Nabard and IDFC have been treated as advances towards subordinated debt and equity.

The authorised capital of National Housing Bank (NHB), a wholly-owned subsidiary of the central bank, was also hiked during the year from Rs 300 crore to Rs 350 crore and the enhanced capital was contributed by the bank. During the year, the entire equity of Bharatiya Reserve Bank Note Mudran Ltd (BRBNML) at Rs 800 crore was allotted to the RBI.

During 1997-98, the RBI divested a major part of its holding (Rs 178.84 crore) out of Rs 250.90 crore in the Securities Trading Corporation of India Ltd (STCI). This has brought down its stake in STCI to 14.92 per cent from 50.18 per cent earlier.

Bank of India acquired a controlling stake in STCI with a paid-up capital of Rs 500 crore during the second half of 1997-98. With this, the bank's stake in STCI has gone up to 28.37 per cent from 1.97 per cent earlier.

Bank of India had earlier planned to join hands with Bank ofBaroda, Canara Bank, Corporation Bank and Vijaya Bank to float Gilts Securities Trading Corporation. However, it walked out at the last moment following differences with co-promoters over the stake-holding pattern.