India has no desire to cut stake in state banks at current valuations: minister

[NEW DELHI] The Indian government has no desire to dilute its stake in state-run banks at current valuations, Junior Finance Minister Jayant Sinha said in a television interview on Monday.

The government last month approved a plan to raise about 1.6 trillion rupees (US$25.3 billion) by selling some of its stake in state-run banks by 2019.

Bad loans at state-run banks are at "unacceptably high" levels, Mr Sinha told the ET NOW television channel, echoing comments from Finance Minister Arun Jaitley over the weekend.

He also said it was important to establish India's credibility in bringing down inflation in the long term and that the central bank chief was the best person to decide on interest rates.

REUTERS