The PSUs could lose out totally to foreign or private banks in meeting the fast increasing capital needs of the corporate world, particularly for the M&As, the nationalised banks are equipped to augment their capital, Mr Bhatt told PTI making a strong case for greater financial empowerment for the nationalised banks to compete effectively. “The question is if you look at it traditionally for increasing capital and if the government shareholding should not go below 51 per cent, then for each increase of capital they (the government as owner) have to bring pro-rate share.”

“So either they (government) do that and if they cannot then there could be some concept of golden shares or non-voting shares or some  capital structure plan where they can have ownership control,” Mr Bhatt said.