Govt may acquire RBI's stake in Nabard, NHB | business | Hindustan Times
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Govt may acquire RBI's stake in Nabard, NHB

business Updated: Aug 02, 2009 13:21 IST

The government is likely to pick up Reserve Bank's stake in the National Bank of Agriculture and Rural Development and National Housing Bank by December this year.

The stake transfer from RBI to the government would take place by December 31, official sources said.

In Budget 2009-10, the government earmarked Rs 1,542 crore for acquiring Reserve Bank's holding in the two regulators Nabard and NHB.

For Nabard's stake buy, the Centre made a provision of Rs 1,100 crore and for that of NHB Rs 442 crore was assigned.

At present, the RBI holds about 72.5 per cent stake in Nabard and the remaining lies with the government. While, NHB is wholly-owned by the Reserve Bank.

The total paid-up capital of Nabard currently stands at Rs 2,000 crore, NHB was capitalised at Rs 350 crore when it was set up in 1988.