Govt weighs lifting equity ceiling in SBI associates

The government is considering State Bank of India's request for lifting the ceiling on equity holding of 200 shares per investor in its seven associate banks.

"The matter is under consideration of the government," minister of state for finance Anand Rao Adsul said in a written reply to Rajya Sabha today.

The equity holding for both the individual investor and corporates in associate banks of the SBI is currently capped at 200 share per investor.

The SBI had approached the finance ministry to lift the ceiling on investors in the associate banks.

The associates of the State Bank of India that are listed include State Bank of Hyderabad, State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Saurashtra, State Bank of Patiala and State Bank of Indore.

The Reserve Bank of India (RBI) has decided to appoint a working group to examine the way of utilisation of priority sector funds, Adsul said.