New Delhi: The Indian government will bring down its holding in public sector banks (PSBs) to 52 percent in a phased manner to ensure that capital needs of banks are taken care of.
The government has been using different criteria in different years for infusion of capital in PSBs, he said.
Minister of State for Finance Jayant Sinha said in a written reply to the Rajya Sabha, “The government will continue to support those banks with alternative strategies which will still not be able to raise capital.”
The criteria of Return on Assets (RoA) and Return on Equity (RoE) in 2014-15 was used to encourage banks to be more efficient in their operations so that internal accruals increase. In a separate response, Sinha said that based on the recommendations of RBI central board, government has approved enlargement of six of the identification mark by 50 percent and introduction of angular bleed lines in banknotes of Rs 100, 500 and 1,000 denominations.
