Nainital Bank was founded by Govind Ballabh Pant. In 1975, the government-owned Bank of Baroda (BOB), the second largest bank in India, acquired a 98.6% (around 99%) stake in the bank and made it a subsidiary. In April 2004, National Insurance Company (NIC) signed an agreement with Nainital Bank for distribution of its general insurance products through the bank's branches across Uttarakhand, Haryana and New Delhi states. The bank had a net worth of around Rs 1.12 billion on as on 31 March 2006.
The bank launched its Rights issue in September 2009, to expand its capital adequacy ratio (CAR) to 14 per cent, this came after it previously withdrew its plans for an IPO due to adverse market conditions in 200. By April 2010, the right issue had raised ₹300 million (US$4.7 million).
Nainital bank is associated with Bank of Baroda, HDFC Bank, LIC, National Insurance Company Limited etc. Currently, NBL has 125 branches in Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan. It also provide online facilities, apart from Personal Banking, Business Banking, Rural and Agricultural Banking. The Nainital Bank Limited is registered as scheduled commercial bank with Reserve Bank of India (RBI), the central bank of India.
At present, Bank of Baroda holds 98.57% share holding in the Nainital Bank Limited and remaining 1.43% shares are held by the public.