Updated Feb 07, 2021 | 17:12 IST
Speaking to reporters in the financial capital, Sitharaman also said that the government has no plan to form any bank investment company to house the government stakes in banks. Govt to work with RBI for execution of bank privatisation plan: FM Sitharaman | Photo Credit: ANI
MUMBAI: Finance Minister Nirmala Sitharaman on Sunday said the government will work with the Reserve Bank for execution of the bank privatisation plan announced in the budget.
Speaking to reporters in the financial capital, Sitharaman also said that the government has no plan to form any bank investment company to house the government stakes in banks.
There was no word on the Bank Investment Company (BIC) in the Union Budget. The move was widely expected given the pressure on capital of state-run banks and the limited pool of revenues of the government to continue capitalising them. The setting up of a BIC will help raise funds for state-run banks without altering their “public sector character”. That’s because the as long as the government holds more than 50 per cent in the BIC, it retains control over these banks as the majority shareholder. The BIC is to be set up under the Companies Act, and it is surmised that that the next steps on the BIC if any may be timed along with the changes to the Banking Regulation Act (1949). And once the state-run banks for privatisation are identified.
Exclusive content, features, opinions and comment - hand-picked by our editors, just for you.
Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
Track the industry of your choice with a daily newsletter specific to that industry.
Stay on top of your investments. Track stock prices in your portfolio.
NOTE :
This product is a monthly auto renewal product.
Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
To cancel, communicate from your registered email id and send the mail with the request to assist@bsmail.in. Include your contact number for easy reference. Requests mailed to any other ID will not be acknowledged or actioned upon.
With the near-term math upended by the pandemic, a realistic roadmap would be a timely guidepost to aid the Centre and states formulate their deficit and debt targets over the next 3-5 years.
Nikhil Bhatt | Research Analyst - SEBI - We may see further consolidation in the index ahead and it would be healthy for markets, traders should maintain extra caution in the selection of stocks now and focus more on risk management., , Stock Market Daily Updates, sensex