Government to consider holding company for public sector banks
By Vaibhav Aggarwal
Jan 17, 2013
Print    Email    RSS   

The Cabinet is likely to consider a proposal for setting up a holding company for public sector banks to raise more funds from the market instead of seeking funds from the exchequer.

An official source said, "We are moving to Cabinet for setting up a holding company for public sector banks".

The source further said that it will take around 2-3 weeks for setting up a holding company and there will be one holding company for all the state-run banks.

The Law Ministry's opinion has been sought for making the legislative changes as various Acts will have to be coordinated and amendments will be required in the Banking Companies (Acquisition and Transfer of undertakings) Act, 1970 and 1980.

The State Bank of India Act 1955 and SBI Subsidiaries Act 1959 will have to be synchronized with the holding company structure, sources said.

"The Law Ministry has to vet the proposal first. Then it will go to Cabinet", the source said.

According to the structured proposed, 99 per cent of government holdings in the bank will be shifted to the holding company and the Government will have only 1 per cent with itself so that it remains a state-owned bank.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

An Insight into Lending Rate Changes
Personal loans in India: Features and...
Central Bank of India ordered to return...
Carnival of Indian Personal Finance Blogs # 9
Carnival of Indian Personal Finance Blogs # 7

HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive