India may form holding company for its bank stakes

Mumbai

INDIA is considering a demand for a holding company for the government's stakes in 27 state-owned banks, a move that may make it easier to raise capital as they struggle with the lowest profitability in at least nine years.

"We will take a decision at a later stage," Finance Secretary Hasmukh Adhia, told reporters in Pune, near Mumbai, where a two-day brainstorming session ended after officials from the government, the regulator and the banks discussed steps to improve the financial health of the lenders.