Cabinet allows raising pvt bank voting rights to 26%

The cabinet approved raising voting rights of stakeholders in private banks to 26% from 10%, Information and Broadcasting Minister Ambika Soni said on Thursday, in a long-awaited boost for the banking sector.

"The cabinet has cleared banking laws (Amendment Bill 2011). It also approved increase of voting rights from 10% to 26% for private-sector banks," Soni told reporters after a cabinet meeting.

With the government staring at a slowing economy, triggered by a lack of reforms, the announcement could bring some cheer to investors, but needs to be cleared by parliament.