Reserve Bank of India has diluted its entire stake in the National Housing Bank (NHB) and the National Bank for Agriculture and Rural Development (NABARD) for an amount of Rs. 1,450 crore and Rs. 20 crore respectively and thus has sold these entities to the Government of India. That is the stake in NHB was sold on 19th March 2019 and its stake in NABARD was sold on 26th Feb 2019.
- This means that henceforth, Government of India, would be holding 100% stake in both these financial institutions as per an RBI report.
- The divestment has been initiated on the recommendations of a panel report and discussion papers were prepared by the Reserve Bank of India.