BCG to soon start consultations for Nabard’s restructuring
Management consulting firm Boston Consultancy Group (BCG) will soon start consultations with National Bank for Agriculture and Rural Development (Nabard) to prepare a roadmap for its restructuring.This is important as Nabard is in the list of 25 public sector undertakings listed by the Centre for disinvestment.
A Nabard official who did not want to be quoted told Business Standard: BCG will receive the appoinment letter in a week. It will be involved in working out a strategy for restructuring Nabard to help it gear up for new challenges.” Read more in the Business Standard
Meanwhile the employees at NABARD are up in arms against the recent moves
Nabard employees decry move to transfer RBI stake
The All-India Nabard Employees Association (AINEA) has strongly expressed its dissent against the Centre’s proposed move to transfer Reserve Bank of India’s stake in Nabard (National Bank for Agriculture and Rural Development) on to itself.
The Centre has decided to divest part of the Nabard shares directly to the market along with those of 25 other unlisted shares of public sector units ranging from Nuclear Power Corporation, Exim Bank to Punjab and Sind Bank.
The RBI currently holds 72.5 per cent of the equity in Nabard. The paid-up share capital is Rs 2,000 crore, of which the RBI’s share amounts to Rs 1,450 crore. The rest (Rs 550 crore or 27.5 per cent) is held by the Government of India.
Read more about the reasons why NABARD must not be privatized.