LS passes SBI subsidiary banks bill,gives more power to Centre

New Delhi, Aug 11 (PTI) The Lok Sabha (lower house of
Indian Parliament) on Thursday approved a bill that will
empower the central government to deal with the issues
concerning subsidiary banks of the State Bank of India.
The Lower House passed the State Bank of India
(Subsidiary Banks) Amendment Bill with voice vote after
Minister of State for Finance Namo Narain Meena assured that
government does not intend to privatise the state-owned banks.
The Left Parties, however, staged a walk out as the
Minister moved the bill for passage.
The bill, according to Meena, will confer powers on the
central bank to approve authorised capital of the SBI
subsidiary banks in consultation with the Reserve Bank.
Earlier such powers were exercised by the RBI. The
situation changed after the central government took over the
equity of the SBI held by the central bank.
The central government, following the amendment, will
also have powers over to approve other activities of the
subsidiary banks like appointment of managing directors,
preferential allotment of shares, issuance of bonus among
others.
Allaying apprehensions of the members that government was
paving the way for the privatisation of the state-owned banks,
Meena said, "this bill is not about privatisation ...
(government) does not intend to privatise PSU banks".
The initiatives, he said, will improve the functioning of
the subsidiary banks of SBI.
On consolidation in the banking sector, Meena said,
neither the government nor the RBI has issued any directive in
this regard.