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‘Retain state-owned character of SBI’

NEW DELHI: The Parliamentary Standing Committee on Finance has told the Government to ensure that the “state-owned” character of State Bank of India (SBI) remains intact even after dilution of its stake in the country’s largest lender to 51 per cent, as per the provisions of the proposed amendment Bill.

In its report tabled in Parliament on Thursday on the SBI (Amendment) Bill, 2006, the committee pointed out that apprehensions had been expressed in certain quarters that the Bill’s provision to cut the Government’s equity stake would have the possibility of affecting the bank’s “state-owned character” which would tantamount to “creeping privatisation” of the bank.

“Mainly in view of the apprehensions expressed on this count, the committee feels it is essential to emphasise on ensuring that the amendment proposals, which are intended to give a headroom to the bank for raising capital from the market do not, in any way, dilute the ‘state-owned’ character of SBI,” the Committee headed by BJP MP Ananth Kumar said.

The committee’s report, however, has a dissent note by two CPI (M) members — Rupchand Pal and Laxman Seth.

They felt that the proposed move to scale down the Government’s equity from 59.73 per cent to 55 per cent and further to 51 per cent was indicative of a path towards privatisation — the Government’s chosen path for financial sector reforms.

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