Cut stake in top public sector banks to 51% in 12-18 months: RBI to govt

Proposal to prune stake to 51% in six banks may fetch over Rs 43,000 crore

The Reserve Bank of India (RBI) has suggested bringing down the government’s stake in six leading public sector banks (PSBs) to 51 per cent over the next 12 to 18 months. This, the regulator feels, will give a much-needed push to the government’s disinvestment efforts. 

State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Canara Bank, Union Bank of India, and Bank of India have been shortlisted for this. “The government has taken the suggestion positively,” said a person in the know.

Sources familiar with the developments said during discussions on the government’s move to monetise