BANGALORE: The capital of state-run banks will be raised through sale of shares to the public, Finance Minister Arun Jaitley announced Thursday while presenting his maiden annual budget.

He clarified that the government would continue to hold the majority ownership in these banks.

The measure is to meet India's obligations under the Basel banking accord signed by 27 nations on capital adequacy norms to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.

Upwards of 240,000 crore of capital by equity is required to be infused into India's banking sector by 2018, Jaitley said.

Gaya will also be developed as a world class tourism spot.

Jaitley also said the country needs more world-class convention facilities.

"World class convention facility to be developed through public private partnership mode," he said.

"Goa has emerged as a major international convention centre, and it has been declared as a venue for international film festival in India," he added.