The Hindu : Business : `Govt. stake not to fall below 51 p.c. in PSBs'

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Friday, May 18, 2007
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`Govt. stake not to fall below 51 p.c. in PSBs'

Special Correspondent

NEW DELHI: Union Finance Minister P. Chidambaram assured the Rajya Sabha on Thursday that the Government would not make any effort to shed controlling stake in public sector banks (PSBs). He gave the assurance while piloting a bill that would allow State Bank of India to reduce its holding in seven subsidiary banks to 51 per cent. The Rajya Sabha later passed the State Bank of India (Subsidiary Bank Laws) Amendment Bill by a voice vote.

However, his efforts to temper the criticism by Left Party members were of no avail with CPI (M), CPI and Forward Bloc members staging a walk out. "We are protesting against the move to privatise nationalised banks,'' CPI (M) leader Brinda Karat said.

"We have made it clear that we do not accept the National Democratic Alliance Government's move to reduce the State's shareholding to below 33 per cent. We want to make it clear that the equity of the Government in public sector banks will not go below 51 per cent,'' Mr. Chidambaram observed.

"The public sector character of the banks has to be preserved forever till Parliament decides otherwise. But I do not envisage that [Parliament amending the law]."

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