The Union Cabinet has given its approval for allowing public sector banks permission to raise capital to meet their additional capital requirements under BASEL-III by diluting government holding.
The banks, however, would be advised to preserve the government holding at minimum of 52 percent and increase the public shareholding in a phased manner through the issue of shares largely to retail investors that is to common citizens of this country.
The Cabinet has said that banks can raise upto 1,60,825 crore rupees from the market by bringing down government holding to 52 percent.
