NEW DELHI: The process of transformation at IDBI Bank BSE 0.46 % is under way and the government is considering selling shares to institutions as an option to reduce its stake in the lender, minister of state for finance Jayant Sinha said on Monday.
Sinha was speaking at an event organised by IDBI Bank. The lender’s managing director, Kishor Kharat, also said the government was working on a stake sale and that the decision on it was likely to be made in the current financial year.
Finance Minister Arun Jaitley had announced in this year’s budget that the government would consider reducing its stake in IDBI bank to less than 50 per cent.
On recapitalisation of public sector banks, Sinha said the government would decide on the issue based on the financial performance of banks in fiscal 2016. “We have the numbers for Q4 and on the basis of that we will see how much provisioning is done and the amount of capital that is required,” he said.
He said the prediction on monsoon is optimistic but it is a longdrawn process and a good spread of rains is necessary for growth across the board.
He said the major achievement of the Narendra Modi government in the last two years has been the success of financial inclusion. “Financial inclusion in India has been no less than a revolution,” he said.
Sinha said the government was promoting cashless transactions and it would be an integral part of JAM (Jan Dhan-Aadhaar-Mobile) trinity.
Source: Economic Times