PSU banks will not be privatized, assures FM

By agencies   |   Thursday, 16 June 2005, 19:30 IST
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NEW DELHI: Public sector banks will not be privatized, finance minister P Chidambaram said, allaying fears that the government may initiate steps to bring down its stake below 51 percent as recommended by the Narasimham Committee. However, he stressed the need to have big banks that are globally competitive. “We want big banks which can finance sectors like agriculture, small and medium scale enterprises, self help groups and now students,” Mr Chidambaram said. He said convergence and consolidation were the need of the hour. He also said that banks should enjoy more autonomy. “I am willing to grant them (banks) more autonomy but they are not asking for it,” he said, adding that the banks would submit a memorandum on the same by the end of the month. The minister said that banks would need to shoulder more responsibility and improve their performances once their autonomy is increased.