For Quick Alerts
For Daily Alerts

RBI Wants Govt To Reduce Stake In PSBs To 26%


In a presentation to the country's PM, the RBI suggested to reduce govt's stake in PSU Banks to 26%, while providing their heads longer tenure such that they manage these organizations more professionally. Currently, government's holding in PSBs is over 50%.

RBI Wants Govt To Reduce Stake In PSBs To 26%

In a meeting on Wednesday, PM Modi asked bankers to lend to bankable proposals and not be haunted by NPAs. "Bringing down the government's stake in public sector banks to allow them to be run more professionally was one of the things discussed," a person with knowledge of the matter told ET.

Also, it was suggested that the government retains major control of these banks, while reducing the stake might need fresh legislation.

However the centre says that it will maintain 52% stake in PSU Banks.

Furthermore, MDs and CEOs should have a tenure of 3 or 5 years and salary at par with private bank.

More importantly, it was recommended that managing directors and CEOs of state-owned banks should have a tenure of three or five years and remuneration should be on a part with private sector bank.

The publication cited a source familiar with the discussion as saying, "There were discussions around whether it was a good time to disinvest or should the government wait longer."

Read more about: rbi public sector banks
Story first published: Friday, July 31, 2020, 12:13 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more