The Finance Ministry is contemplating raising the international direct funding (FDI) limit in public sector banks (PSBs) to 49 per cent from the present 20 per cent to strengthen their capital base, PTI reported.“We are still considering, and inter-ministerial consultation is on for raising FDI cap to 49 per cent,” Financial Services Secretary M Nagaraju stated.At current, FDI in PSBs is capped at 20 per cent, whereas non-public sector banks can obtain up to 74 per cent international funding. In non-public banks, FDI up to 49 per cent is permitted via the automated route, whereas funding past 49 per cent and up to 74 per cent requires authorities approval.The transfer is being evaluated as a part of broader efforts to help capital wants of state-run lenders amid progress growth.Nagaraju stated the Union authorities’s shareholding in 12 PSBs has not declined in phrases of variety of shares since 2020, though share shareholding has decreased in some banks due to capital raising via recent share issuance.He stated PSBs collectively raised about Rs 45,000 crore via varied routes, together with certified institutional placement (QIP) and provide on the market.Banks are anticipated to mobilise about Rs 45,000-50,000 crore in the following monetary yr as nicely, in line with their progress trajectory.Providing a progress outlook, he stated public sector banks are anticipated to double their asset measurement over the following 5 years. The mixed property of PSBs stood at about Rs 261 lakh crore on the finish of September 2025.On the strategic disinvestment of IDBI Bank, the secretary stated monetary bids are probably to be invited this month or subsequent month.In October 2022, the federal government and LIC had invited expressions of curiosity (EoI) from traders for privatisation of IDBI Bank via sale of a complete 60.72 per cent stake, together with 30.48 per cent held by the federal government and 30.24 per cent by LIC.DIPAM obtained a number of EoIs in January 2023. Prospective patrons have obtained safety clearance from the Ministry of Home Affairs and have been declared match and correct after analysis by the Reserve Bank of India.On sector consolidation, Nagaraju stated India would want three to 4 giant banks.“We need 3-4 big banks for a country of our size,” he stated.
