New Delhi: The Lok Sabha Thursday approved a bill that will empower the central government to deal with the issues concerning subsidiary banks of the State Bank of India. The Lower House passed the State Bank of India (Subsidiary Banks) Amendment Bill with voice vote after Minister of State for Finance Namo Narain Meena assured that government does not intend to privatise the state-owned banks. The Left Parties, however, staged a walk out as the Minister moved the bill for passage. The bill, according to Meena, will confer powers on the central bank to approve authorised capital of the SBI subsidiary banks in consultation with the Reserve Bank. Earlier such powers were exercised by the RBI. The situation changed after the central government took over the equity of the SBI held by the central bank. The central government, following the amendment, will also have powers over to approve other activities of the subsidiary banks like appointment of managing directors, preferential allotment of shares, issuance of bonus among others. Allaying apprehensions of the members that government was paving the way for the privatisation of the state-owned banks, Meena said, "this bill is not about privatisation ... (government) does not intend to privatise PSU banks". The initiatives, he said, will improve the functioning of the subsidiary banks of SBI. On consolidation in the banking sector, Meena said, neither the government nor the RBI has issued any directive in this regard.
Zee News
No comments:
Post a Comment