The state-run banks have been allowed to raise as much as 1.6 trillion rupees ($26 billion) from share sales to boost capital.
The government has decided to cut its ownership in banks to as low as 52 percent in a “phased manner” in order to curb slowdown in credit growth.
Excluding dividends received from the lenders, budgetary support may be 444 billion rupees in 2015 to 2019.
The government holds a 59 percent stake in the country’s largest lender State Bank of India (SBI). State shareholdings range from as high as 84 percent in Central Bank of India to as low as 56 percent in Bank of Baroda (BOB).
"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.