No dilution of govt stake in PSU banks: Pranab

 Union finance minister Pranab Mukherjee on Sunday reiterated that the government will continue with its economic reforms programme and there is no question of government’s dilution of stake below 51 per cent in the public sector banks.

For the past five years, the UPA government has been pursuing the banking reforms agenda and it is the ‘solid government stakeholding in the PSU banks’  that has enabled the banks in India to tide over the  downturn. 

No  need for dilution

 “Some of the banks (PSU) have also declined budgetary support and told us that they can mobilise their own funding requirements. This once again shows that there is no need of any dilution of the government’s stake in the banks below 51 per cent; rather it would be well above it,” Mukherjee said. Mukherjee was here to distribute token Kisan Credit Cards to farmers at a credit delivery camp organised by the Kolkata-based United Bank of India. 

Mukherjee also said that on this day 40 years ago (1969), 14 scheduled commercial banks by then Prime Minister Indira Gandhi through the promulgation of an ordinance. This was one move, which had a lot of foresight, he added.  Earlier, UBI  CMD  SC Gupta, who accompanied Mukherjee here, said that the bank has registered a 10 per cent growth in the first quarter of the current fiscal and crossed a business level of Rs 1 lakh crore on a year on year basis in July 2009.    “ The bank is hoping to tap the market for its maiden IPO(initial public offer) sometime in December or January next Gupta said.

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