India to cut stake in state-run companies when markets improve: Jaitley

[NEW DELHI] India will sell shares in some state-run companies when market conditions improve, Finance Minister Arun Jaitley said on Monday, as the government struggles to meet its asset sales target that is crucial to help plug its deficit.

India has raised just about US$2 billion, or less than 20 per cent of its divestment target, so far this year.

Jaitley also said he expected recent steps taken by the government and the central bank to improve asset quality of state-run banks in a "reasonable" time. Indian banks have been burdened with their highest bad loan ratio in a decade.

REUTERS