RS returns SBI (Amendment) Bill, 2007 to Lok Sabha

New Delhi, Aug 23 (UNI) The Rajya Sabha today returned The State Bank of India (Amendment) Bill, 2007 to Lok Sabha with the Government asserting that it will maintain its majority 51 per cent equity in the public sector banks which have a key role in driving the economy of the country forward.

''We stand for safeguarding the public sector face of the banks and the government equity will not come below 51 per cent,'' Minister of State for Finance Pawan Kumar Bansal said while giving a detailed reply after discussions on the Bill which was earlier passed by the Lok Sabha.

Mr Bansal stated that the non-performing assets (NPAs) of the banks have come down to 1.05 per cent and loans worth Rs 8,300 crores in 2005-06 and Rs 9000 crores in 2006-07 have been written off.

On guidelines issued by the RBI from time to time, Mr Bansal said, the core activity of the banks will not be outsourced Answering a question, Mr Bansal said currently banks have started giving ex-gratia payment and has done away with compensation on compassionate grounds.

Eds : Picking up here suitably from related series.

UNI