India plans to raise as much as Rs1.6 trillion ($26 billion) by selling down stakes in state-backed banks, in a potentially far-reaching move that could act as a precursor to future privatizations in the country’s state-dominated banking sector.
India’s government banks are severely undercapitalized, with rating agency Fitch suggesting that lenders will need to raise $200 billion in fresh capital by 2019 to meet Basel III banking norms and cope with a recent jump in problem loans.
In response, Prime Minister Narendra Modi has agreed plans to sell down stakes in 27 state-backed banks by 2019. Its holding will be cut to 52 percent in all cases, down from between 56 percent and 84 percent.
via CNBC
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza