Lok Sabha Question No. 287 (STARRED), answered on 2015-12-18
Subject: Government Stake in Banks
Ministry: FINANCE
Asked by: SULTAN  AHMED

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA STARRED QUESTION NO . *287

TO BE ANSWERED ON THE 18 th December, 2015 / Agrahayana 27, 1937 (SAKA)

## GOVERNMENT STAKE IN BANKS

## *287 . SHRI SULTAN AHMED:

Will the Minister of FINANCE be pleased to state:

- a) whether the Government proposes to bring down Governments' stake/share in the Public Sector Banks, if so, the details thereof and the reasons therefor, bank-wise including the Industrial Development Bank of India (IDBI);
- b) whether the Government also proposes to amend the IDBI Act to reduce its stake below 51 per cent, if so, the details thereof; and
- c) the steps taken/being taken by the Government to protect the interests of employees including IDBI in this regard?

## ANSWER

THE FINANCE MINISTER

(SHRI ARUN JAITLEY)

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

(a)

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STATEMENT FOR LOK SABHA STARRED QUESTION NO. *287 FOR 18 th DECEMBER, 2015 REGARDING GOVERNMENT STAKE IN BANKS TABLED BY SHRI SULTAN AHMED, MEMBER OF PARLIAMENT.

(a) to (c): 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.

## ANNEX

## Lok Sabha Starred Question No. *287 for 18.12.2015 regarding Government Stake in Banks

|   Sl.No | Name of the Bank          | Permission Given                                                       | Approval date       | Status           |
|---------|---------------------------|------------------------------------------------------------------------|---------------------|------------------|
|       1 | Central Bank              | 626.23 crore                                                           | 30/12/2014          | Amount Raised    |
|       2 | United bank               | 500 crore                                                              | 31/12/2014          | Yet to be raised |
|       3 | State bank of India       | 15000 crore through QIP                                                | 23 rd FEB 2015      | Yet to be raised |
|       4 | Bank of India             | 642 crore(22645502 shares)                                             | 10 th march 2015    | Raised           |
|       5 | UCO bank                  | Raising of equity capital of Rs 487 crore on preferential basis to LIC | 20 th March 2015    | Raised           |
|       6 | Oriental bank of Commerce | 1000 crore ( including share premium) through QIP                      | 24 th March 2015    | Yet to be raised |
|       7 | Union bank of India       | QIP raising of Rs 1386 crore                                           | 15 th April 2015    | Yet to be raised |
|       8 | Canara Bank               | Preferential allotment of 4 crore equity capital shares to LIC         | 22 nd April 2015    | Amount Raised    |
|       9 | Vijaya Bank               | 600 crore including premium through QIP route                          | 04 th November 2015 | Yet to be raised |

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