'Govt stake in PSU banks not to go below 51 pc'

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Chennai, Jun 2: Asserting the Centre's stake in PSU banks will not be diluted to below 51 per cent, Union Finance Minister P Chidambaram said the government will provide enough avenues for the banks to raise capital. Speaking at the 13th triennial conference of the All India UCO Bank Employees' Federation here last night, he ruled out government diluting its stake to below 51 per cent in the PSU banks.

''The government's equity will not go below 51 per cent and the PSU banks will ever remain as PSU banks,'' he said and cited the example of SBI to which the government has offered a sum of Rs 10,000 crore as capital for its development. ''If any other PSU bank wanted to raise its capital, the government will come forward to help it do so,'' he added.

Asserting India should not fear about competition or globalisation, he said it was the Western world that had to fear and respect India because Indians have the determination to make it to the top.

''The 21st century is the century of Asia in which India and China are going to be to the dominant players.

''Countries such as Vietnam and China have shown the way.

We should remove the shackles and change the mindset to emerge at the top. If China can do it in five years, we can do it in 10,'' he added.

UNI

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