Sarkaritel.com News and Features-Corporate News

SBI raises stake in Nepal JV to 55%

New Delhi, June 02, 2009

The country's largest lender, State Bank of India, on Mondday said that it has increased its stake to 55 percent in joint venture Nepal SBI Ltd from 50 percent earlier.

SBI has been alloted 4,37,400 shares in Nepal SBI Ltd in a divestment of stake by Agricultural Development Bank conducted through a competitive bid process, SBI said in a filing to the Bombay Stock Exchange.

The total shareholding of SBI in Nepal SBI Ltd will reach 55 percent, after transfer of these shares with due necessary regulatory approvals, it said.

Shares of the bank closed at Rs 1879.80, up 0.57 percent on the Bombay Stock Exchange.

Nepal SBI Bank Ltd is the first Indo-Nepal joint venture in the financial sector sponsored by three institutional promoters -- SBI, Employees Provident Fund and Agricultural Development Bank of Nepal.

Agricultural Development Bank had five percent stake in the joint venture.

Remaining stake is with Employees Provident Fund (15 percent) and the general public (35 percent).

The management team and the Managing Director who is also the CEO of the bank are deputed by SBI. SBI also provides management support as per the Technical Services Agreement.  

E-Mail : newseditor@sarkaritel.com