Financial holding co to infuse equity into PSBs likely
Officials said corporates with exposure to real estate would not be allowed to apply for bank licences. In the first round, the government may prefer existing non-banking finance companies (NBFCs) including micro-finance NBFCs such as SKS Microfinance as candidates, the official said.
The government will also push stake sales in six companies — Oil India, NTPC, Nalco, SAIL, MMTC and RCF — by March-end. The ministry is hoping to raise about R27,000 crore through disinvestments in this fiscal, another official said. The target for disinvestments, as set out in the budget was R30,000 crore. A stake sale in IFCI will be pursued only in 2013-14.
Meanwhile, a proposal to launch a PSU ETF (exchange traded fund) will also be placed before the cabinet shortly. Moreover, a proposal to ease the offer for sale (OFS) norms to facilitate easier trades through this mechansim will also be placed before the cabinet. The ministry is also moving a cabinet note to use the disinvestment proceeds for capitalisation of state-owned banks and financial institutions.
The FHC is being set up mainly to leverage its balance
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