Mumbai: The Reserve Bank has exited the National Housing Bank (NHB) and the National Bank for Agriculture & Rural Development (Nabard), by selling its entire stakes to government for Rs 1,450 crore and Rs 20 crore, respectively, making them fully government-owned now. The central bank has sold its stake in NHB on March 19, while it sold the stake in Nabard on February 26, the bank said in a statement.
“With this divestment, the government now holds 100 percent stake in both these financial institutions,” RBI said in a statement. The move is part of ending the cross-holding in regulatory institutions and follows the recommendation of second Narasimham committee report of October 2001 and the RBI’s own discussion paper on the same entitled ‘Harmonizing the role and operations of development financial institutions and banks.’
