Lok Sabha passes bill to give control of SBI subsidiary banks to government
12 Aug 2011
The Lok Sabha today passed the State Bank of India (Subsidiary Bank Laws Amendment Bill, 2009) that gives the government powers to manage the five subsidiaries of the State Bank of India (SBI), fix their authorised capital and appoint managing directors.
The central government owns a controlling stake in SBI.
The bill also provides for fixing the terms of office, salary and allowances of the managing directors of the SBI subsidiary banks.
The bill was passed by voice vote following an assurance from the minister of state for finance Namo Narain Meena that the government had no intention to privatise state-owned banks.
The Left parties, meanwhile, staged a walk-out amid cries of malafide intentions by opposition parties.
SBI currently has five subsidiaries, which include State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.
Two of the SBI subsidiaries, State Bank of Saurashtra and the State Bank of Indore, were amalgamated with the SBI in 2008.