Reducing Government Stake In Banks: The Steps PM Modi Is Reviewing

Friday, 17 December 2021Newsdesk

The government is considering changes that would make it easier to lower its stake in state-run banks, a key step in Prime Minister Narendra Modi's plan to unclog credit flow to the economy.

New Delhi, 17 December 2021

As per news report of NDTV, The proposals -- if approved -- would allow the government to gradually lower its holding in state-run lenders to 26% from 51% without diluting its grip on management appointments, the people said, asking not to be identified as the deliberations are private. They would also simplify privatization of certain identified lenders and permit foreign investors to purchase bigger stakes in others without seeking parliament approval. With the proposed amendments, PM Modi is seeking to reduce state-run banks' reliance on frequent injections of government capital while still maintaining their quasi-sovereign status that depositors favor.

Source - NDTV