New Delhi, July 10 (IANS) The capital of state-run banks will be raised through sale of shares to the public, Finance Minister Arun Jaitley announced Thursday while presenting his maiden annual budget.
He clarified that the government would continue to hold the majority ownership in these banks.
The measure is to meet India’s obligations under the Basel banking accord signed by 27 nations on capital adequacy norms to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.
Upwards of Rs.240,000 crore of capital by equity is required to be infused into India’s banking sector by 2018, Jaitley said.