Sbi: Go Global

A doubt can only arise if the issue creates the potential, no matter how notional, of the foreign stake one day threatening domestic control. Even if the foreign stake somehow crosses 30 per cent, the Reserve Bank of India will continue to hold 55 per cent. To this has to be added the Indian institutional and corporate holders who have large enough stakes to form, along with RBI, a domestic group of big shareholders. It is foolish to talk of a foreign takeover threat when domestic holding is 60 per cent or more. In fact, RBI can safely relinquish a good bit more of its stake to enable the Indian public to own more SBI shares without the government losing control. If the RBI holding went down to 49 per cent, SBI could function like a commercial organisation, where you lose in one deal and more than make up in another without fear of vigilance inquiries.