MR Umarji, Former Chief Legal Advisor of Indian Banks' Association, on Wednesday said it need 75 percent approval in government to have meaningful changes in public sector undertaking (PSU) banks - Bank Investment Company (BIC).
With just four days left for Finance Minister Nirmala Sitharaman to table the Union Budget, the big buzz is that the government may finally give wings to the Bank Investment Company (BIC) -- this new entity would serve as a holding company of public sector banks.
Speaking in an interview to CNBC-TV18, Umarji said, "The requirement that government shall hold minimum 51 percent from the share capital of PSU banks is under relevant laws under which they are constituting."
According to him, the banks need to be converted into companies and then have to modify minimum holding by government.
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