Govt to retain 51 per cent stake in PSU banks

Chandigarh, Sep 2 (UNI) The Union government will not bring down its stake in public sector banks less than 51 per cent and it would maintain their public sector character, Minister of State for Finance Pawan Kumar Bansal said today.

''The public sector character of PSU banks will continue and the government will not reduce its stake less than 51 per cent in them,'' Mr Bansal said in his inaugural adress at a conference on 'Banking on Growth' organised by the PHDCCI here.

However, the Minister assured the government would try to ensure that public sector banks become professional.

''They need to have corporate governance in place and a customer-friendly attitude,'' he added.

The reforms in the financial sector, he said, would continue in a steady manner. ''However, we can not emulate China in this regard becuase of the different political system we have.'' The government would ensure that adequate funds were available to the productive sectors such as manufacturing, infrastructure and agriculture, the Minister said.

UNI MA SBA DS1518