Lok Sabha Question No. 100 (STARRED), answered on 2016-04-29
Subject: Government Stake in PSBs
Ministry: FINANCE
Asked by: SUPRIYA SADANAND SULE, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## STARRED QUESTION NO. *100

TO BE ANSWERED ON29 th  April, 2016 / Vaisakha 9,1937 (SAKA)

## Government Stake in PSBs

## *100  SHRIMATI SUPRIYA SULE: SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government  proposes to privatise/bring down its share in the Public Sector Banks (PSBs);
- (b)  if  so,  the  details  thereof,  bank-wise  including  Industrial  Development  Bank  of India;
- (c)  whether  the  Government  has  consulted  various  stakeholders  including  bank's unions in this regard and if so, the details thereof; and
- (d)the steps taken by the Government to give more powers to banks to recover dues from wilful defaulters?

## ANSWER

The FINANCE MINISTER (SHRI ARUN JAITLEY)

- (a) to (d): A Statement is laid on the Table of the House.

****

STATEMENT  FOR  LOK  SABHA  STARRED  QUESTION  NO.  *100  FOR  29 th APRIL,  2016  REGARDING  GOVERNMENT  STAKE  IN  PSBs  TABLED  BY SHRIMATI  SUPRIYA  SULE  &  SHRI  MOHITE  PATIL  VIJAYSINH  SHANKARRAO,

MEMBERS OF PARLIAMENT. (a) to(c):After deliberations, the Public Sector Banks(PSBs) including IDBI Bank have been allowed vide letter no. F.No. 11/7/2008-BOA dated 19.12.2014 to raise capital  from  Public  markets  through  Follow-on  Public  Offer(FPO)  or  Qualified Institutional Placement(QIP) by diluting Government of India holding upto 52% in phased  manner  based  on  their  capital  requirement,  their  stock  performance, liquidity, market conditions etc. The details regarding the banks which have been permitted for raising capital post this decision are at Annex. (d):  Reserve Bank of India (RBI) has issued guidelines (July 1, 2015, available on RBI's   website) on wilful defaulters to dis-incentivize borrowers who have money and do not pay or have diverted or siphoned off funds or removed assets given as security,  indicating  action  that  includes;  (i)  restricting  additional  facilities  to  such defaulters from banks and financial institutions, (ii) barring of such borrowers from institutional finance, (iii) criminal action, (iv) removal of directors of such companies from boards and (v) change in management.

******

## Annex to Lok Sabha Starred Question *100 for 29.4.2016

| Permission Given to PSBs after 19.12.2014 to raise capital from the   | Permission Given to PSBs after 19.12.2014 to raise capital from the   | Permission Given to PSBs after 19.12.2014 to raise capital from the                          | Permission Given to PSBs after 19.12.2014 to raise capital from the   | Status              |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------|---------------------|
| market Sl.No                                                          | Name of the Bank                                                      | Permission Given                                                                             | Approval date                                                         |                     |
| 1.                                                                    | Central Bank of India                                                 | 626.23 crore                                                                                 | 30.12.2014                                                            | Raised(1.1.2015)    |
| 2                                                                     | United bank of India                                                  | 500 crore                                                                                    | 31.12.2014                                                            | Not raised          |
| 3                                                                     | State bank of India                                                   | 15000 crore                                                                                  | 23.2.2015                                                             | Not raised          |
| 4                                                                     | Bank of India                                                         | 642 crore                                                                                    | 10.3.2015                                                             | Raised (19.03.2015) |
| 5                                                                     | UCO bank                                                              | 487 crore on preferential basis to LIC                                                       | 20.3.2015                                                             | Raised(27.03.2015)  |
| 6                                                                     | Oriental bank of Commerce                                             | 1000 crore ( including share premium) through QIP                                            | 24.3.2015                                                             | Not raised          |
| 7                                                                     | Union bank of India                                                   | QIP raising of Rs 1386 crore                                                                 | 15.4.2015                                                             | Not raised          |
| 8                                                                     | Canara Bank                                                           | Preferential allotment of 4 crore equity capital shares to LIC                               | 22.4.2015                                                             | Raised (22.04.2015) |
| 9                                                                     | Vijaya Bank                                                           | 600 crore including premium through QIP route                                                | 04.11.2015                                                            | Not raised          |
| 10                                                                    | Corporation bank                                                      | 143 crore by way of issue of equity shares on preferential basis in favour of LIC of India . | 29.12.2015                                                            | Raised (31.12.2015) |
| 11                                                                    | IDBI Bank                                                             | 3771 crore through QIP                                                                       | 30.12.2015                                                            | Not raised          |
| 12                                                                    | Bank of India                                                         | 20000000 equity shares                                                                       | 31.12.2015                                                            | Raised (5.01.2016)  |
| 13                                                                    | Indian Overseas bank                                                  | 51.79 crore equity shares of 10                                                              | 12.1.2016                                                             | Raised (29.3.2016)  |
| 14                                                                    | Andhra bank                                                           | preferential allotment of upto Rs. 200 crore to LIC                                          | 17.03.2016                                                            | Raised(29.03.2016)  |
| 15                                                                    | IDBI Bank                                                             | preferential allotment of upto Rs. 848.42 crore to LIC                                       | 17.03.2016                                                            | raised              |
| 16                                                                    | Dena Bank                                                             | preferential allotment of upto Rs. 450 crore to LIC                                          | 17.03.2016                                                            | Raised (30.03.2016) |
| 17                                                                    | Central Bank of India                                                 | preferential allotment of upto 31441088 equity shares to LIC                                 | 28.03.2016                                                            | Raised (31.03.2016) |
| 18                                                                    | Oriental Bank of Commerce                                             | preferential allotment of upto Rs. 179 crore to LIC                                          | 28.03.2016                                                            | Raised (28.03.2016) |
| 19                                                                    | Bank of India                                                         | preferential allotment of upto Rs. 40 crore to GIC                                           | 21.03.2016                                                            | Raised (30.03.2016) |
| 20                                                                    | Syndicate Bank                                                        | preferential allotment of upto Rs. 216.94 crore to LIC                                       | 28.03.2016                                                            | Raised              |
| 21                                                                    | Vijaya bank                                                           | preferential allotment of upto Rs. 226 crore to LIC                                          | 28.03.2016                                                            | Raised 30.03.2016   |
| 22                                                                    | Allahabad Bank                                                        | preferential allotment of upto Rs. 58 crore to LIC                                           | 28.03.2016                                                            | Raised 31.03.2016   |