Bank of Baroda to focus on IndiaFirst Life Insurance, Nainital Bank for divestment

Currently, Bank of Baroda holds 65 percent stake in the IndiaFirst Life Insurance Company, while nine percent is being hold by Union Bank of India, and 26 percent by Carmel Point Investments India Pvt Ltd.

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26 Aug, 2025 12:21

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State-owned Bank of Baroda is focusing to divest stakes in IndiaFirst Life Insurance and Nainital Bank, managing director and chief executive officer Debadatta Chand said.

“Stake sale in Nainital Bank process is still on and divestment in IndiaFirst Life Insurance company could happen in next 12-18 months,” Chand said while addressing Moneycontrol’s query during the post-earnings press conference of the lender.

However, stake sale plans for BOBCARD Ltd, which is a 100-percent subsidiary of the bank have been put on hold, he added.

On July 30, 2022, Bank of Baroda had received approval from the board for around 12.50 percent stake sale in the insurance arm while ensuring that the shareholding of the Bank in lndiaFirst does not fall below 51.00 percent of the current paid-up equity share capital of lndiaFirst, by way of offer for sale in the proposed initial public offer of lndiaFirst or through any other method permissible under applicable law.

Currently, Bank of Baroda holds 65 percent stake in the IndiaFirst Life Insurance Company, while nine percent is being hold by Union Bank of India, and 26 percent by Carmel Point Investments India Pvt Ltd.

In Nainital Bank, Bank of Baroda is a majority stakeholder with over 98 percent stake.

As per website of the bank, the total business of the Bank was Rs 12,463.98 crore as on September 30, 2023, as against Rs 11,461.15 crore in a year ago period.

Total advances of the Nainital Bank stood at Rs 4,654.92 crore as on September 30, 2023, and total deposit stood at Rs 7,809.06 crore as on September 30.

Earlier on July 31, Bank of Baroda reported 9.5 percent rise in standalone net profit at Rs 4,458 crore for the quarter ended June 30, 2024. It reported standalone net profit of Rs 4,070 crore in the year-ago period.

On a sequential basis, the bank's net profit fell nine percent.

On July 31, the bank's shares on BSE closed 0.7 percent lower at Rs 254.50 apiece.