Parliament passes SBI subsidiary banks bill

Parliament today passed the SBI Subsidiary Banks Bill, paving way for subsidiary banks of SBI to raise capital through preferential allotment/private placement of shares.

The Lok Sabha passed the State Bank of India (Subsidiary Banks Laws) amendment Bill, 2011 through a voice vote after an amendment was moved by minister of state for finance Namo Narain Meena.

The amendment followed a similar amendment to the bill carried out in the Rajya Sabha on 30 August. The amendment was done to remove a technical glitch and it has no major implications.

The Rajya Sabha had since returned the bill to the Lok Sabha for carrying out the amendments.

The bill, which seeks to transfer powers to the central government from the Reserve Bank of India with regard to SBI subsidiary State Bank of Hyderabad was passed amidst din created by opposition members over various issues, including the appointment of Lokayukta in Gujarat.

The transfer of powers to the centre has been necessitated after the ownership of the SBI was transferred from the RBI to the government.