Bill seeks powers to fix capital of State Bank of India arms

February 24th, 2009 - 7:13 pm ICT by IANS  

New Delhi, Feb 24 (IANS) The finance ministry Tuesday tabled a bill in parliament that seeks to empower the government to fix the authorised and paid-up capital of the subsidiaries of the State Bank of India (SBI) and to appoint its top management.
The bill was necessitated after the ownership of these subsidiaries of India’s largest commercial bank was transferred to the government from the Reserve Bank of India (RBI), which is also the regulator for the banking industry in the country.

“Due to change in ownership, those provisions need to be suitably modified to reflect the change in ownership,” says the statement of objectives of the bill, tabled by Minister of Sate for Finance P.K. Bansal.

“Further, the change of ownership in the State Bank also necessitate consequential changes,” the statement added, seeking to amend the Stat Bank of India (Subsidiary Banks Laws) Act of 1959 and the State Bank of Hyderabad Act, 1956.

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