Saturday, November 28, 2020
Home India Government may reduce stake in banks to 52 percent: Jaitley

Government may reduce stake in banks to 52 percent: Jaitley

By NewsGram staff writer

Mumbai: Finance Minister Arun Jaitley, regarding the concerns about levels of non-performing assests (NPAs) or bad debts, of public sector banks, said that government may consider reducing its stake in them to 52 pre cent.

Addressing the annual meeting of Indian Banks’ Association here, he also said state-run banks have to be freed from political interference in decision-making and their decisions should be based only on banking merits.

“Efforts are on to give shape the banking bureau and to professionalize all personnel issues. We are willing to look at changes. We have appointed a panel headed by Justice AP Shah to find options of hiring best quality talent,” he said.

Taking the first step towards a holding company structure for state-run banks, the government last month announced the setting up of a Banks Board Bureau (BBB) that will recommend appointment of directors in PSBs and advice on ways of raising funds and dealing with issues of stressed assets.

Jaitley has allocated Rs.7, 940 crore in the budget for recapitalization of public sector banks in this fiscal.

In December, the union cabinet had allowed state-run banks to raise up to Rs.160, 000 crore from the capital markets by diluting the government stake in phases to 52 percent.

As per an estimate, public sector banks would need additional capital of up to Rs.240, 000 crore by 2018 to meet the Basel III capital adequacy norms, put in place to guard against a repeat of the situation following the 2008 US financial crisis.
Jaitley also said the government was getting ready to unveil a draft for a bankruptcy code by early October.

“The bankruptcy code draft will be put out by early next month and would be taken to parliament from there. Resolution of disputes with relation of contracts law will be passed by the end of the fiscal,” he said.

 

(With inputs from IANS)

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,780FollowersFollow

Most Popular

The Horrible Truth About Tipu’s Gifts To Hindu Temples

Tipu Sultan also known as the Tiger of Mysore was the ruler of the Kingdom of Mysore based in South India born on 20 November 1750...

Tips On Starting A Video Production Company

By Spiel Creative As time goes by, many people are consuming more video than text content. Due to this, the video production scene is growing...

Fred Sancilio Explains COVID-19’s Impact On Drug Supply Chains

By Jamie Cartwright The COVID-19 outbreak has forced the pharmaceutical industry to reevaluate every aspect of the industry from manufacturing pharmaceuticals to the drug supply...

Ashtottaram 26: OṀ SUPHALABHŨMYAI NAMAH

Ashtottaram 26 26) OṀ SUPHALABHŨMYAI NAMAH:      OṀ (AUM)-SU-PHA-LA-BHOO-MYAI– NA-MA-HA ॐ सुफलभूम्यै नमः (Suphala: Good fruit; 'su': Well, good, auspicious; 'Phala': Fruit, the result of an action)  Suphala is a...

Creative Rendition Of City Varanasi For Dev Deepawali

The creative rendition of the city of Varanasi, or Benaras, on this unique festival falling after Diwali, pays tribute and celebrates the Goddess Ganga. Dev...

Report: How Painting, Sketching Eased Lockdown Stress

With the COVID-induced lockdown requiring most to stay indoors, what flourished was a reconnection to the arts - music, literature, dancing, and even painting...

Sudden Drop In Temperature Pushes Winter Wear Sales

The sudden drop in temperature in North India has seen buyers make a beeline and stock up on their needs. With the early onset...

Tokyo Olympics Announced To Host 18 Test Events

TOKYO - Local organizers on Friday announced a series of 18 test events set to begin in March and run into May. The Tokyo...

Recent Comments