Finance Minister P Chidambaram today said that the government will not dilute its stake in PSU banks below 51%, and that its proposed acquisition of RBI's holding in State Bank of India (SBI) would not adversely affect the capital raising ability of the bank.Chidambaram said SBI had a comfortable capital adequacy ratio of 12.63% as on September 30 this year, which was well above the minimum regulatory requirement of 9%.The bank has a number of avenues irrespective of its ownership to strengthen its capital - raising fresh equity, issue of innovative perpetual debt instruments and various other instruments to shore up its Tier-II capital, he said."Hence, transfer of RBI shareholding in SBI to the Government of India would not in any way adversely impact the capital raising ability of the bank," Chidambaram said.Pointing out that RBI's holding in SBI was a legacy issue, Chidambaram said the Narasimhan Committee had recommended in 1996 that it is inconsistent with the principles of effective supervision that the regulator is also an owner of a bank and this would require the central bank to divest its holding banks and financial institutions.Following the committee's report RBI had announced its intention to transfer its ownership of shares in the country's largest bank SBI, housing finance companies regulator NHB and NABARD. RBI holds 100% stake in NHB, over 57% in SBI and 72.5% in NABARD.
