No change in policy on foreign ownership in banks: Sharma .

Commerce and Industry Minister Anand Sharma Monday said the government has no plans to alter its policy on foreign ownership in banks in India.

'As far as ownership and control are concerned, that has been defined with clarity and the calculation of FDI (foreign direct investment) is much simpler. The policy has worked well,' the minister told reporters on the sidelines of an event organised by the industry lobby, Associated Chambers of Commerce and Industry of India (Assocham).

'We have to look at it not from a narrow prism, but look at the larger picture,' he added.

According to the new policy brought about by the government in February this year, an Indian bank in which a foreign investor holds 51 percent stake or more is considered a foreign bank.

Some Indian banks falling under this category have sought clarifications from the finance ministry on the new policy as they fear that future investments by foreign investors could be restricted.

'There are some banks and talks have been there between the Reserve Bank of India, Finance Ministry and the Commerce Ministry,' Sharma said.

Source : Sify.com