Thursday, 10 July 2014

Current Affairs-Indian Government's General Budget 2014-15-Capital of Public Sector Banks to be raised through Sale of Shares

Capital of Public Sector Banks to be raised through Sale of Shares


The capital of banks will be raised by increasing the shareholding of the people in a phased manner through sale of shares largely through retail to common citizens of the country. Announcing this in his maiden Budget Speech in Lok Sabha, the Finance Minister Shri Arun Jaitley said that there is a requirement to infuse Rs. 2, 40,000 crores as equity by 2018 in the Public Sector Banks. To meet this huge capital requirement, additional resources have to be raised. By selling the shares through retail, the citizens will get direct shareholdings in these banks even as the Government will continue to have majority shareholding. Shri Jaitley said that Government will also examine the proposal to give autonomy to the banks while making them accountable. 

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