The Cabinet cleared the Amendment Bill yesterday paving the way
for the government to lower its stake in to 51%.
India's largest public bank can now go in
for a follow-on or rights issue. The government currently holds 59.41%
stake and can raise Rs 12,549 crore via the 8% stake sale.
The bill may now be introduced in this session of Parliament.
The stock is buzzing today.
Commenting on the same, Ashvin Parekh, Partner and National
Leader - Global Financial Services, Ernst & Young, says the
bill was long awaited. "It gives the bank leeway to raise
further capital. It also allows it to go in for a bonus issue or offer
employee stock options."
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