Finance Minister Nirmala Sitharaman on Monday met leaders from banking, mutual fund, insurance and non-banking financial companies (NBFCs) as part of annual pre-Union Budget consultation exercise.
After the meeting, State Bank of India Chairman Rajnish Kumar said: “The group has made suggestions about taxation, certification, improving credit growth and increasing of financial market sufficiency.”
Sources, who attended the meeting, said some bankers suggested that the government, after the consolidation drive for public sector banks (PSBs) concludes, not worry about the top six in the segment; rather, it should focus on the remaining six.
“Some bankers are of the opinion that the government should dilute its stake to less than 50 per cent in the seventh, eighth and ninth bank in the pecking order. This dilution should be at the market rate. For the last three PSBs, the government should run these under a public-private partnership (PPP) model,” said a senior banker.