Arun Jaitley: India not ready for privatisation of public sector banks

The government is consolidating some of the public sector banks to strengthen them, but does not plan to reduce the state's share below a threshold of 52 percent.

By: Reuters | New Delhi | Published:September 7, 2016 10:36 am
banking sector, India private banks, India banks, India banking sector, Jaitley, Economist India Summit, Economist India Summit Arun Jaitley, Arun Jaitley, Arun Jaitley Economist India Summit, India banking news, India news Finance Minister Arun Jaitley. Source: Amit Chakravarty

India has not reached the point where it can consider selling majority stakes in the public sector banks that control seven tenths of assets in the financial system, Finance Minister Arun Jaitley said on Wednesday.

“I don’t think that public or political opinion has converged to the point where we can think of privatisation in the banking sector,” Jaitley told the Economist India Summit in New Delhi.

The government is consolidating some of the public sector banks to strengthen them, but does not plan to reduce the state’s share below a threshold of 52 percent, Jaitley said in a podium interview.

Jaitley, Commerce Minister Nirmala Sitharaman and Information and Broadcasting Minister Ravi Shankar Prasad will discuss the government’s policy priorities to help foster and support the country’s innovation economy.