AMN / New Delhi
The leading industry body, the Confederation of Indian Industry (CII) has suggested a six-point agenda to the government, to further recapitalise the Public Sector Banks (PSBs).
CII has said that a prudent combination of any or all these recommendations will go a long way in easing the PSBs of the Non Performing Assets (NPA), overhang by infusing capital and creating the necessary momentum for credit growth in the economy.
According to CII, first, over the next 2-3 years, the government could consider bringing down its stake in most PSBs to 33 per cent.
It could retain a larger share in the State Bank of India in order to meet priority needs.
The off-loading of stake may be in the form of preference shares instead of equity shares, to maintain the majority voting rights with the Government with nil transference to the investors.