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According to the reports from the Economic Times, government will be looking into the proposals for the induction of strategic investors in the public sector banks, which are facing financial crunch.
According to Economic Times, the discussion regarding the same will be attended by senior officials of Prime Minister’s office, officials from RBI as well as Planning Commission officials. The meeting will be discussing the proposal put forward by Manmohan Singh, which calls for the inclusion in strategic investors in nationalized banks. The investors can even be private or foreign banks, adds the report.
The paper also mentions that the proposal may be opposed by Congress and will also need changes to the regulatory constraints as according to the current law, the government should hold a minimum of 51% stake in nationalized banks.
"Any forward movement on such a proposal would be difficult in present circumstances as government stake in most public sector banks is close to 51 percent," the paper quoted an unidentified chairman of a government-run bank.
