India to cut stakes in state lenders to raise US$14.4b

New Delhi

THE Indian government plans to raise about US$14.4 billion by reducing its stakes in state-run banks to 52 per cent, the junior finance minister said on Friday, sending shares of state lenders higher.

The government holds stakes ranging from 56 per cent to 84 per cent in 24 state-run banks that account for 70 per cent of total outstanding loans of about US$1 trillion in Asia's third-largest economy.