No proposal to cut govt stake below 51%, to remain majority shareholder, says M Nagaraju, Secretary (FS)

No proposal to cut govt stake below 51%, to remain majority shareholder, says M Nagaraju, Secretary (FS)

M Nagaraju, Secretary (FS), Ministry of Finance on September 16 said that there is no proposal to government stake below 51 percent and government to remain majority shareholder.

“There is no proposal to cut government stakes in PSU banks below 51%. We want to be the majority shareholder,” Nagaraju said at CNBC TV18's Banking Transformation Summit 3rd edition.

The government is progressing with its stake divestment plans through the Offer for Sale (OFS) route in five PSU banks. Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India and Punjab and Sind Bank have been shortlisted for partial disinvestment in the coming months.

On July 30, Moneycontrol had reported that Merchant bankers appointed to manage the upcoming QIP of five nationalised banks have likely been mandated by DIPAM to rope in as many foreign investors as possible during roadshows.

Nagaraju further said that most banks very healthy now with record profits posting last financial year and having a low non-performing assets (NPA) ratios.

Nagaraju is hopeful that PSU banks will report a record profit in the current financial year too.

Further, he added that the insurance Amendment Bill, which proposes 100 per cent FDI in the insurance sector, is likely to be introduced in Parliament in the upcoming Winter session.