FII limit of PSU banks may rise

New Delhi: The Finance Ministry will propose the raising of FII limit of PSU banks. The limit is likely to be raised from 20 per cent to 24 per cent.

PSU banks have sent a proposal to the government seeking a hike in FII limit to 24 per cent from current 20 per cent.

At this moment all the sectors and even the private banks have 24 per cent FII limit. But the public sector banks have only 20 per cent FII limit.

The government wants to provide a level playing field to the PSU banks.

There is also a plan to raise Rs 60,000 crore in three years. Hence, it is believed that FIIs should be provided more and more investment avenues, as it will not only give the investor better options but will also yield better value for the shareholder.

An announcement to this effect is likely to be made in the next budget. The RBI will, then, formally issue the guidelines.