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Under Increasing Pressure, Government Considers Banks’ Stake Dilution
October 24, 2017
The union government is mulling over diluting its share in the banks in which its holding is above 75%. This is in a bid to raise capital for the Public Sector Banks (PSBs) that are struggling with a large number of non-performing assets.
A senior official said that although the market conditions will play a pivotal role in the government’s plan of selling its stake in the PSBs, it also needs to lower its stake below 75% in certain banks first. This is to comply with the norm that PSBs must attain a minimum 25% public shareholding.