No privatisation of banks: Jaitley

New Delhi, February 24

Union Finance Minister Arun Jaitley today ruled out privatisation of public sector banks as a response to the Rs 11,400-crore fraud hitting Punjab National Bank, saying the move may not be politically acceptable.

At an event here, he said a lot of people have started talking of privatisation in the aftermath of the PNB fraud. “This involves a large political consensus. Also, that involves an amendment to the law (Banking Regulation Act). My impression is that Indian political opinion may not find favour with this idea itself. It’s a very challenging decision,” he said.

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On Friday, FICCI president Rashesh Shah said he had asked the FM to begin the process of bank privatisation in a phased manner, leaving just two-three lenders in the public sector. Industry body Assocham has also urged the government to reduce its stake in public sector banks to less than 50 per cent so that they can work with the sense of accountability. — PTI