India's largest lender, State Bank of India (SBI), today said it has increased its stake to 55 per cent in joint venture Nepal SBI from 50 per cent earlier.
SBI has been alloted 4,37,400 shares in Nepal SBI 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 will reach 55 per cent, after transfer of these shares with due necessary regulatory approvals, it said.
Shares of the bank closed at Rs 1,879.80, up 0.57 per cent on the Bombay Stock Exchange.
Nepal SBI Bank 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 5 per cent stake in the joint venture.
Remaining stake is with Employees Provident Fund (15 per cent) and the general public (35 per cent).
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.
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