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.

Hemant Singh Updated: 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