Reddy on Friday said that there was no “crisis” in the Indian banking system, but cautioned that Indian banks would eventually pass into foreign hands if there is no review of current policies. The shareholding of foreign entities in the large private banks in India is over 70% while in the public sector banks, government and LIC hold bulk ownership and foreigners own majority of the rest of the stake, Reddy said. We have public sector banks with mixed ownership....Our banking system is predominantly owned by the government, followed by foreigners and rest by Indians. The first step for improving our banking system is a commitment to reduce SLR and CRR to global levels as soon as possible. We can not have globally competitive economy with an over-burdened banking system,” he said.

Source: The Hindu February 02, 2018 06:15 UTC