{"id":33214,"date":"2018-10-30T11:23:27","date_gmt":"2018-10-30T05:53:27","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=33214"},"modified":"2018-10-30T11:23:27","modified_gmt":"2018-10-30T05:53:27","slug":"pare-stake-in-psbs-to-33-cii-to-govt","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pare-stake-in-psbs-to-33-cii-to-govt\/","title":{"rendered":"Pare stake in PSBs to 33%: CII to govt\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/Industry\/pare-stake-in-psbs-to-33-cii-to-govt\/article21827534.ece\"><strong>Pare stake in PSBs to 33%: CII to govt<\/strong><\/a><strong>\u00a0<\/strong><\/p>\n<p><strong>Context<\/strong><\/p>\n<p>The Confederation of Indian Industry (CII) urged the Centre to dilute its majority stake in public sector banks (PSBs), from the current threshold of 52% ownership to 33% over the next three years, to complement its \u20b92.11 lakh-crore recapitalisation plan for these banks.<\/p>\n<p><strong>Stake in SBI<\/strong><\/p>\n<p>The Centre could retain a larger share in the State Bank of India to meet priority sector needs and even maintain majority voting rights in other PSBs by diluting its stake through non-voting shares, the industry chamber recommended.<\/p>\n<p><strong>Stakes in other PSBs<\/strong><\/p>\n<ul>\n<li>The minimum government stake in PSBs had been relaxed to 52% from 58%, but the actual holdings in many of these banks is more than 80%<\/li>\n<li>Just four banks have a government stake of 58% each as of March this year, the CII noted. \u201cNew accounting standards will also be applicable for banks from April 1, 2018.<\/li>\n<\/ul>\n<p><strong>Increase provisioning requirements<\/strong><\/p>\n<p>This is likely to increase provisioning requirements on bad loans by as much as 30%, further adding to these banks\u2019 capital requirements,\u201d the CII pointed out, suggesting the Centre could immediately initiate public issues to dilute its stake to 52% in the public sector banks.<\/p>\n<p><strong>Reviving bank growth<\/strong><\/p>\n<p>The bank recapitalisation programme may revive bank credit growth over the next couple of years and lift the economy from the overhang of NPAs (non-performing assets)<\/p>\n<p><strong>CII Suggestions<\/strong><\/p>\n<ul>\n<li>CII had suggested the Centre set up a holding company for its banking stakes and distance itself from day-to-day management of the PSBs<\/li>\n<li>The holding company could be empowered to raise resources and monitor banks\u2019 performance, it said.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Pare stake in PSBs to 33%: CII to govt\u00a0 Context The Confederation of Indian Industry (CII) urged the Centre to dilute its majority stake in public sector banks (PSBs), from the current threshold of 52% ownership to 33% over the next three years, to complement its \u20b92.11 lakh-crore recapitalisation plan for these banks. Stake in&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/pare-stake-in-psbs-to-33-cii-to-govt\/\">Continue reading <span class=\"screen-reader-text\">Pare stake in PSBs to 33%: CII to govt\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-33214","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704872852},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=33214"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/33214\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=33214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=33214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=33214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}