India not ready to privatise public sector banks: Arun Jaitley

Arun Jaitley

New Delhi,Sep 06: Finance Minister Arun Jaitley today said India is not ready for the privatisation of public sector banks and their present characteristics will continue except for IDBI (Industrial Development Bank of India).

“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.

On being asked why privatisation in financial space is not taking place, he said, “In order to reach a particular level of reform you have to evolve into that stage of public opinion… in funding the large part of social sector in India, public sector banks, despite competition had a far larger contribution.”

He also hinted that the government is ready to provide an additional capital over the Rs25,000-crore amount announced in the Budget.

#India public sector banks #FinanceMinister #Arun Jaitley #Economist India Summit government

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