Zerodha, Premji Invest In Talks To Buy Stake In Nainital Bank: Report
Venture investors and startups, including Premji Invest and Zerodha, are negotiating with the Bank of Baroda to acquire a stake in its subsidiary, Nainital Bank, according to media reports.
Notable potential backers, including Premji Invest and the prominent stock broking firm Zerodha, have engaged in talks with Bank of Baroda regarding this stake sale.
Additionally, private equity firm Multiples has also been involved in discussions with the bank.
Bank of Baroda, which currently holds a stake of over 98 per cent in Nainital Bank, is exploring options to divest a substantial portion of its holding in the subsidiary.
Nainital Bank operates across five Indian states and boasts over 140 branches. In recent weeks, discussions on this matter have progressed significantly.
The plan being considered is to initially sell approximately 40 to 50 per cent of Bank of Baroda's stake in Nainital Bank, with the possibility of selling the remaining shares later on. It is expected that a consortium of several entities will emerge as the successful bidder, according to another source familiar with the situation.
These investment discussions coincide with the Reserve Bank of India's evaluation of allowing external investors to back a select few banks. Shivalik Bank, supported by Accel and Quona last year, and fintech unicorn Slice, which recently received approval from the central bank to merge with North East Small Finance Bank, are among the institutions in the spotlight.
