14.05.2014 - Give up control in state banks: Nayak panel to govt
A Reserve Bank of India (RBI)-appointed panel, headed by former Axis Bank chairman PJ Nayak, has recommended radical reforms for Indian banks. It suggested the government transfer all its stake and powers in public sector banks (PSBs) to a separate entity, to be known as bank investment company (BIC). The committee proposed the BIC be constituted as a core investment company under RBI regulations and the character of its business "make it resemble a passive sovereign wealth fund for government banks". "The principle of proportionate voting rights should constitute part of the regulatory bedrock that fosters good governance," the report said, adding for distressed banks, private equity funds, including sovereign wealth funds, should be allowed to take a controlling stake of up to 40 per cent...............................................Full Article: Source
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