State Bank of India (SBI), Punjab National Bank (PNB), Union Bank of India, Bank of India, Syndicate Bank and Canara Bank up in the range of 3% to 5%, while Bank of Baroda, Oriental Bank of Commerce, Indian Bank, Allahabad Bank and Andhra Bank up 2% each.
The government should bring down its stake in PSBs to 33% in the next three years as it plans to recapitalise banks to strengthen NPA-hit lenders, industry body CII said.
In October, the government had unveiled an unprecedented Rs 2.11 lakh crore two-year road map for strengthening NPA-hit public sector banks, which includes re-capitalisation bonds, budgetary support, and equity dilution.
"...Over the next 2-3 years, the Government could consider bringing down its stake in most PSBs to 33%. It could retain a larger share in the SBI in order to meet priority needs. The off-loading of stake may be in the form of preference shares instead of equity shares to maintain the majority voting rights with the Government with nil transference to the investors,” the industry body said in a statement, the PTI report suggested. CLICK HERE TO READ FULL REPORT