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Bank holding company proposal being examined: FM

Last Updated: Wednesday, July 3, 2013 - 22:53

New Delhi: Government Wednesday said ministries of finance and law are are examining the proposal to set up a financial holding company to raise resources for capitalisation of public sector banks.

"This is under consideration. But frankly I have not taken a view. This is an idea that I inherited that we will set up a holding company," Finance Minister P Chidambaram said in reply to a query in this regard.

In the Budget 2012-13, the then Finance Minister Pranab Mukherjee had proposed the holding company to raise resources to meet the capital requirements of public sector banks.

"It is being examined between the Department of Financial Services and Ministry of Law, but no view has been taken," Chidambaram said, adding the matter has not been discussed yet at the "highest level".

Earlier, the Finance Minister said that all PSU banks are compliant with Basel capital requirements.

In the current fiscal, the government has budgeted Rs 14,000 crore towards capital infusion in public sector banks.

PTI

First Published: Wednesday, July 3, 2013 - 22:53
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