What is the Intake of Government in the Public Sector Banks of India?

Speaking at the Indian Banks’ Association’s annual general meeting, Arun Jaitley said that “The government is looking to reduce its stake in State-run banks to 52 per cent to make them more professional and independent.” At present, the government owns over 59 per cent stake in State Bank of India, the country’s largest public sector lender, 81.5 per cent in Central Bank of India, 71.7per cent in IDBI Bank.
Created On: Jul 14, 2016 10:16 IST
Modified On: Mar 8, 2017 18:24 IST

Speaking at the Indian Banks’ Association’s annual general meeting, Arun Jaitley said that “The government is looking to reduce its stake in State-run banks to 52 per cent to make them more professional and independent.” At present, the government owns over 59 per cent stake in State Bank of India, the country’s largest public sector lender, 81.5 per cent in Central Bank of India, 71.7per cent in IDBI Bank.

The main motive behind the reducing the stake of government in the Public Sector Banks (PSBs) is that  government want to reduce the political pressure on the decision making capability of the banking sector so that they can compete with global banks.

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Money Supply and Inflation

                                         Government’s Shareholding in Public Sector Banks

                                                              (As on September 28, 2015)

S.No.

                                      Name of the Bank

Total Government and RBI (% share)

Nationalised Banks

1.

Allahabad Bank

55.2

2.

Andhra Bank

58.0

3.

Bank of Baroda

55.4

4.

Bank of India

64.1

5.

Bank of Maharashtra

81.2

6.

Canara Bank

64.5

7.

Central Bank of India

81.5

8.

Corporation Bank

59.8

9.

Dena Bank

55.2

10.

IDBI Bank Limited

71.7

11.

Indian Bank

80.0

12.

Indian Overseas Bank

73.8

13.

Oriental Bank of Commerce

58.0

14.

Punjab & Sind Bank

79.9

15.

Punjab National Bank

57.9

16.

Syndicate Bank

66.2

17.

UCO Bank

69.3

18.

Union Bank of India

57.9

19.

United Bank of India

82.2

20.

Vijaya Bank

55.0

21.

SBI

59.0

22.

State bank of Bikaner and Jaipur

-

23.

State of Bank of Hyderabad

-

24.

State Bank of Mysore

-

25.

State Bank of Patiala

-

26.

State Bank of Travancore

1.0

Note: SBI board had, on May 17 2016, cleared a proposal to merge its five associate banks and Bharatiya Mahila Bank with itself. Government of India also approved the same in the June. Now the current position of SBI at the global arena stands as follows…

Jagranjosh

Image source: http://www.thehindubusinessline.com

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