•  Currently, government shareholding in public sector banks ranges from 55% to 82%. There is sufficient headroom available to the Government for dilution of its stake in a number of public sector banks.
•  Given its fiscal constraints, should the Government dilute its shareholding in PSBs to 51% or should the Government go further and acquiesce in reducing its shareholding to below 51%, but build in some safeguards for retaining requisite management control?