'No plan to induct strategic investors in govt banks'

The government didn't plan to induct any strategic investors in weak public sector banks (PSBs) and would not trim its holding in state-owned banks to below 51 per cent, a senior finance ministry official said on Tuesday.

"There is no such move, not at all," the official said, denying media reports that the government was likely to consider a proposal to induct strategic investors next week.

The official said government would recapitalise many weak state-owned banks by March. "We would be detailing capital infusion plans for PSBs, including weak ones, in the supplementary demand for grants in December," the official said. Last month, the World Bank had approved $2-billion loan to India, which will be used to recapitalise weak state-owned banks.