Currently, the Centre holds 50 per cent in RRBs, while 35 per cent and 15 per cent are with the concerned sponsor banks and state governments.
The idea to establish ABBFF was to remove the fear of witch-hunting and actions based on hindsight, among officials of public sector banks.
Nirmala Sitharaman is scheduled to meet heads of public sector banks on June 20 and is expected to take a stock of credit growth, asset quality and plan revival of the economy, sources said.
In the Union Budget for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises.
The enhanced capital would help banks expand their business and push credit growth in the productive sectors.
Low salary hike: Public Sector bank employees to go on nationwide strike from today; banking services to be disrupted
Most of the banks, including SBI, PNB and BoB, have already informed their customers that functioning of branches and offices will be impacted if the strike takes off.
The country’s largest lender SBI wants to revamp the ownership structure of its money-spinning subsidiary SBI Caps, but the proposal has put Public Sector Banks (PSBs) in a spot.
AIBEA General Secretary said ever since PNB-diamantaire Nirav Modi's Scam came to light, there has been strong voice from different corners demanding privatisation of PSBs
After PNB scam, Banks Board Bureau seeks wider engagement with government on issues pertaining to PSBs
Seeking dialogue with the Finance Ministry, it said that without a greater interaction with the Ministry, the Bureau was merely functioning as an appointment board.
The state-owned banks have closed down 35 overseas branches and representative offices as part of the clean and responsible banking initiative.
After Punjab National Bank scam, Finance Ministry gives 15-day deadline to public sector banks for identifying risks
Late last evening, scam-hit Punjab National Bank said that the amount involved in the fraudulent transactions could increase by USD 204.
Rajeev Kumar, secretary, Department of Financial Services, said the government will infuse Rs 88,139 crore capital into PSBs by March 31, but recapitalisation will be tied to performance and reforms.
Services at public sector banks may take a hit on Tuesday as all unions under the aegis of UFBU have threatened to go on strike against the government's proposed consolidation move.