Govt stake sale in PSU banks can fetch more than Rs58,000 crore: Assocham
New Delhi: The dilution of government stake to 52% in public sector banks under the bank recapitalisation plan can fetch valuation much higher than the estimated potential of Rs58,000 crore, according to an Assocham report released Sunday.
“As PSU banks have been given over-weightage following the government announcement of capital infusion, their valuations have already gone up.... This would surely mean that if the banks are able to encash the sweet spot, they can easily raise much more than Rs58,000 crore,” industry body Assocham said in the report.
A higher fundraising from stake sale in PSU banks would allow the government to reduce the size of recapitalisation bond issue to less than Rs1.35 trillion, thus bringing down the interest burden on the budget and avert pressure on fiscal deficit, the report said.
The Assocham report also said that once the uptick in lending resumes, there would be consequent advantages by way of higher economic growth and tax buoyancy.
The finance ministry had last week unveiled an unprecedented Rs2.11 trillion two-year bank recapitalisation plan, which includes issue of recapitalisation bonds, budgetary support, and equity dilution.