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National News

Jul 04, 2018
8:47AM

Govt has no intention to lower its stake in public sector banks: FM

Union Finance Minister Piyush Goyal has said that the government is ready to discuss with the Reserve Bank its concerns regarding lack of powers in regulating state-run lenders. Speaking to reporters in Mumbai yesterday, Mr. Goyal said banking system has failed to live up to the high standards and ethics expected of them. He, however clarified that the government does not intend to lower its stake in public sector banks adding that there was no proposal to bring down government stake in state run banks from 51 to 20 percent

Mr. Goyal said that the government will back all the state-run banks with enough capital. A day after accepting the recommendation to set up an a bad bank to resolve smaller loan defaults of up to 500 crore rupees, the Minister said liquidation can't be a remedy for all NPAs as genuine business failures must be resolved.

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