Govt to reduce holding in public sector banks: Jayant Sinha

“The government will continue to support those banks with alternative strategies which will still not be able to raise capital,” Jayant Sinha says

To ensure that the capital needs of banks are met, the government has decided to reduce its holding in public sector banks to 52%, Parliament was informed on Tuesday.

The government holding in these banks would be reduced in a phased manner.

“The government will continue to support those banks with alternative strategies which will still not be able to raise capital,” Minister of State for Finance Jayant Sinha said in a written reply to the Rajya Sabha.

The government has been using different criteria in various years for infusion of capital in PSBs, he said