Banks Line Up To Invest In Govt’s Ecommerce Project! SBI, Kotak, HDFC, Axis Pick Stakes In ONDC
Besides SBI, PNB was the first public sector bank to invest in ONDC, an open protocol-based digital commerce platform aka ecommerce marketplace.
The update follows MeitY’s CSC investing an undisclosed amount in the open protocol-based ecommerce platform
ONDC was incorporated on December 31 last year and is likely to commence operations by August later this year Different arms of the government have come forward to back the recently announced Open Network for Digital Commerce (ONDC). Country’s largest bank, State Bank of India (SBI), has picked up a 7.84% stake in the newly announced initiative for INR 10 Cr.
With this, SBI has become the second public sector bank in the country to acquire a stake in the ONDC. Earlier in November last year, PNB had proposed to invest INR 25 Cr or acquire 9.5% equity, whichever would be lower.
This comes on the heels of Kotak Mahindra Bank, Axis Bank and HDFC Bank announcing that they had also acquired 7.84% stake each in the digital infrastructure framework entity. Kotak Mahindra, HDFC and Axis picked up a stake in the ONDC for an amount of INR 10 Cr each.
In a regulatory filing , Kotak said that it had subscribed to 10 Lakh equity shares of ONDC for a consideration of INR 10 Cr, translating into an equity shareholding of 7.84%. In a separate filing , Axis Bank announced a similar update having been allotted 10 Lakh equity shares worth INR 10 Cr.
According to SBI’s exchange filing, the Indian public bank has stated that the bank and its subsidiaries, in the ordinary course of business, may have business dealings with ONDC at an arm’s length.
It also mentioned that the equity ownership was ‘aimed at providing an open public digital infrastructure to develop and transform the Indian digital commerce ecosystem for both goods and services.’This announcement […]
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