- News>
- Finance & Markets
RBI asks govt to let SBI acquire banks
Mumbai, Nov 08: The Reserve Bank of India has asked the government to introduce legislative amendments that will allow the State Bank of India (SBI) to acquire other banks and raise capital from the market.
Similar amendments have also been proposed in the State Bank of India (Subsidiary Banks) Act, ’59 to enhance the authorised capital and reduce SBI stake in its subsidiaries to 51%.
Earlier, the central bank had suggested the transfer of its holding in SBI to the government. However, the government has till now failed to move on this.
Sections of the industry feel that SBI may also have to take a view on the long standing proposal for a merger of SBI associates with the parent. Although several chairmen have tried to push for consolidation of the associate banks with the parent, they have made little headway.
Bureau Report