Question : PRIVATISATION OF PUBLIC SECTOR BANKS

(a) whether the Government propose to allow foreign private majority equity in Public Sector Banks;

(b) if so, the details thereof;

(c) whether the Government are aware that the decision to privatise nationalised banks by bringing down the Government`s stake to 26 percent threatens to further erode the self reliance of the economy and the job security of thousands of employees also at stake;

(d) if so, the reaction of the Government in this regard; and

(e) the details of policy formulated by the Government for Public Sector Banks to meet social obligations ?

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL) :

(a) No, Sir.

(b) Does not arise.

(c) There is no proposal to bring down the Government`s stake to 26%

(d) Does not arise.

(e) As per directions of the Reserve Bank of India, all scheduled commercial banks are to extend to the priority sector, 40% of the net bank credit for that year. There are also credit-linked schemes, which address the needs of different segments of the relatively economically and socially disadvantaged population.