The Union Government has set up a committee to assess the capital requirements of public sector banks to ensure that Tier-I capital is at 8 per cent, government holding is at 58 per cent stake and also prepare them for Basel III capital norms.
“That is sacrosanct,'' said Mr D. K. Mittal, Secretary (Financial Services), Ministry of Finance.
He was speaking to reporters after the meeting with representatives of Western States and bankers here on Saturday.
The Government has allocated Rs 6,500 crore in the 2011-12 Union Budget for capitalisation of six-seven public sector banks and will make additional allocation, if required, in the supplementary Budget in December, said Mr Mittal.
A new Chairman for LIC will be announced in about 10 days, Mr Mittal said. “The process for appointment of a new Chairman for LIC is on. The committee will announce the new Chairman shortly,'' he said.
Mr D. K. Mehrotra was appointed interim chairman of LIC in May, after Mr T S Vijayan was denied an extension when his term came to an end. Mr Mehrotra was appointed for three months or till further orders.
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