Finance Minister Arun Jaitley ruled out privatisation of banks

New Delhi, Feb 24: Following the Rs 11,300 crore Punjab National Bank fraud by accused diamond trader Nirav Modi, Finance Minister Arun Jaitley on Saturday ruled out privatisation of public sector banks (PSBs), saying the move may not find political consensus.

In light of the PNB scam that has rocked the Indian banking system since February 14, the industry chambers Ficci, Assocham and CII have urged the government to surrender its majority control of banks and allow them to function like private sector lenders.

"This (privatisation) involves a large political consensus. Also, that involves an amendment to the law (Banking Regulation Act), as well as amendment in the political consensus," Jaitley said at the ET Global Business Summit here.