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Govt may consider cutting stake in state-run banks: Jaitley

Says govt will draft for a bankruptcy code at the end of this month or in early Oct

Govt may consider cutting stake in state-run banks - Arun Jaitley
Reuters
Last Updated : Sep 28 2015 | 2:51 PM IST

The government may consider reducing its stake in state-run lenders to 52%, Finance Minister Arun Jaitley said on Monday.

The government would also consider other issues including problems tied to distressed state power providers, Jaitley said while speaking at a banking conference.

His comments come amid continued concerns about the levels of distressed debt in the banking sector.

The government was getting ready to unveil a draft for a bankruptcy code at the end of this month or in early October, Jaitley added.

State-owned lenders have struggled to recover much of the bad debt piling up on their balance sheets using available mechanisms because of the lack of a bankruptcy code.

 

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First Published: Sep 28 2015 | 2:03 PM IST

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