NEWS & ADVICE : PERSONAL LOAN
Govt. again planning for NABARD, NHB takeover
By Vaibhav Aggarwal
Jul 13, 2010
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Government has again revived its plans to takeover the stake of RBI in two financial institutions namely National Bank for Agriculture and Rural Development (Nabard) and National Housing Bank (NHB). It is likely that RBI would be transferring its stake with these two institutions to the government this fiscal.

The finance ministry is planning to make a provision of Rs 1,900 crore for the purpose. According to sources, provisions of Rs 1,450 crore and Rs 450 crore would be made for acquiring stakes in Nabard and NHB, respectively.

Earlier government had laid of its plans regarding the takeovers but has revived them again.

While NHB is fully-owned by RBI, the government has 27.5 per cent stake in Nabard.

"Earlier, RBI had asked the finance ministry not to acquire the stake this year because of the global financial crisis. But now it plans to issue a notification for stake transfer," said an official.


 


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