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Privatisation of public sector banks ruled out
February 25, 2003 14:38 IST
The government on Tuesday ruled out in the Rajya Sabha any proposal to privatise public sector banks in the country.
"No proposal to privatise public sector banks is under consideration of the government," Finance Minister Jaswant Singh said during the Question Hour.
He, however, said an amendment to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 was proposed to modify the stipulation of minimum prescribed government shareholding in nationalised banks from 51 per cent to 33 per cent.
"This is to enable nationalised banks to raise capital from the market without affecting the public sector character of these banks," he said.
Singh said accordingly the Banking Companies (Acquisition and Transfer of Undertakings) and Financial Institutions Laws Amendment Bill, 2000 was introduced in the Lok Sabha. The Bill was referred to the Standing Committee on Finance in December 2000 and the report of the Committee was still awaited, he said.
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