Rs 114-bn PNB scam: CII for privatisation of public sector banks

The CII president said financial malfeasance perpetrated by unethical business entities and corrupt officials should not lead to a situation where funds to industry get choked

The government should announce a road map to bring down its stake in public sector banks (PSBs) to 33 per cent in three to four years, said Confederation of Indian Industry (CII) president Shobana Kamineni. Before privatisation, she said the government should reduce the stake in PSBs to 52 per cent at the earliest, as the holding would rise after recapitalisation.

“It is time for the government to consider consolidation of PSBs and develop a few strong banks that adhere to best standards in governance, accountability and transparency. Currently, the shareholdings of government have been rising with bank recapitalisation attempts, and