The State Bank of India has increased its stake in its joint venture Nepal SBI Ltd to 55 per cent from 50 per cent earlier, the state-run lender said in a filing to the Bombay Stock Exchange today.
SBI said it bought the 5 per cent stake in Nepal SBI Ltd by acquiring 4,37,400 shares divested by the Agricultural Development Bank. The stock sale was conducted through a competitive bid process, it added.
Once the transfer of shares is completed, SBI's total shareholding in Nepal SBI Ltd will go up to 55 per cent.
SBI said the share transfer would, however, require due regulatory approvals.
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 per cent stake in the joint venture while Employees Provident Fund held 15 per cent and the general public the remaining.
SBI provides management support to Nepal SBI Ltd as per the technical services agreement. It also appoints the managing director who is also the CEO of the bank are deputed by SBI.
SBI, meanwhile, hinted at the possibility of another round of rate cuts after the finance minister Pranab Mukherjee meets chiefs of all PSU banks early next month.
"As far as interest rates are concerned, we will take a view after bankers' meeting with finance minister," SBI chairman O P Bhatt said after the launch of Defence Salary Package on Friday. He said there was enough liquidity in the banking system but credit offtake was yet to pick up.