Govt may consider cutting stake in state-run banks: Jaitley

Says govt will draft for a bankruptcy code at the end of this month or in early Oct

The government may consider reducing its stake in state-run lenders to 52%, Finance Minister Arun Jaitley said on Monday.

The government would also consider other issues including problems tied to distressed state power providers, Jaitley said while speaking at a banking conference.

His comments come amid continued concerns about the levels of distressed debt in the banking sector.

The government was getting ready to unveil a draft for a bankruptcy code at the end of this month or in early October, Jaitley added.

State-owned lenders have struggled to recover much of the bad debt piling up on their balance sheets using available mechanisms because of the lack of a bankruptcy code.