Union Budget 2009 | Government to hold majority stake in state-owned banks

The government will continue to hold at least 51 percent stake in the banks and insurance companies it owns, Finance Minister Pranab Mukherjee said while presenting the union budget for 2009-10 in the Lok Sabha Monday.

However, citing the average public float in listed entities - which is less than 15 percent - the finance minister said the government proposed to increase the non-promoter holding in listed companies.

Mukherjee also praised the late prime minister Indira Gandhi for nationalising bank and insurance companies, which insulated the Indian financial sector from the recent global slowdown.