Bank of Baroda, a state-owned financial institution, is planning to divest its stakes in IndiaFirst Life Insurance and Nainital Bank, according to the bank’s Managing Director and CEO, Debadatta Chand. The process to divest its stake in Nainital Bank is already underway. The bank expects to divest its stake in IndiaFirst Life Insurance within the next 12 to 18 months.
During a recent press conference, Chand clarified that the bank’s plan to sell its stake in BOBCARD Ltd, a 100% subsidiary, has been put on hold. The decision to sell shares in IndiaFirst Life Insurance was approved by the board on July 30, 2022. The bank plans to sell around 12.50% of its stake, ensuring that its shareholding in IndiaFirst does not fall below 51%.
Stake Ownership in IndiaFirst Life Insurance
| Stakeholder | Current Ownership (%) |
|---|---|
| Bank of Baroda | 65 |
| Union Bank of India | 9 |
| Carmel Point Investments | 26 |
Currently, Bank of Baroda holds a 65% stake in IndiaFirst Life Insurance, with Union Bank of India owning 9%, and Carmel Point Investments India Pvt Ltd holding 26%. In Nainital Bank, Bank of Baroda is the majority stakeholder, owning over 98% of the shares.
These strategic moves come amid the bank’s recent financial performance, which showed a 9.5% increase in standalone net profit for the quarter ending June 30, 2024, reaching ₹4,458 crore. This reflects a significant rise from ₹4,070 crore in the same period last year, although there was a 9% decline in profit compared to the previous quarter.
Bank of Baroda’s Financial Performance
| Financial Metric | Q1 2023 | Q1 2024 | % Change |
|---|---|---|---|
| Standalone Net Profit (₹ Crore) | 4,070 | 4,458 | +9.5% |
| Total Business (₹ Crore) | 11,461.15 | 12,463.98 | – |
| Total Advances (₹ Crore) | – | 4,654.92 | – |
| Total Deposits (₹ Crore) | – | 7,809.06 | – |
