India not ready for PSU banks privatisation: Jaitley

New Delhi, Sep 7 (PTI) Attaching highest priority to thehealth of public sector banks, Finance Minister Arun Jaitleytoday said India is not ready for their privatisation and thepresent characteristics of PSU banks will continue except forIDBI Bank. "We are trying to consolidate some of the banks, which mayotherwise find it difficult in a competitive environment… inone case we are thinking of reducing the government stake to49 per cent in IDBI Bank," the minister said here at theEconomist India Summit. Jaitley added that in a consolidated manner they wouldprobably continue to be in the present state. "But I think India still realises that there has been avery important role that some of these banks have performed,"he said. Asked why privatisation in financial space is not takingplace, he said, "In order to reach a particular level ofreform you have to evolve into that stage of publicopinion… in funding large part of social sector in India,public sector banks, despite competition had a far largercontribution." According to Jaitley, the public or political opinion isstill to converge to a point where one can start thinking interms of any form of privatisation in the sector. "Some selective reforms do take place, for instance, wehave announced a policy that government holdings (in banks) tobe brought down to 52 per cent," he added. On stressed assets, the finance minister said the Centrehas initiated a large number of steps to reduce NPAs. "There is not a single sector that we have left out interms of resolving issues… if you were to ask me after thepassage and may be possible implementation of GST, while thatprocess is on what would be my priority at the moment, it iscertainly the health of public sector banks," he said. He also hinted that the government is ready to providean additional capital over the Rs 25,000-crore amountannounced in the Budget. "This is over and above whatever assistance from theBudget we are giving towards the capitalisation of banks," hesaid. PTI DP NKD BALABK