Cabinet allows raising private bank voting rights to 26%

The cabinet has approved raising voting rights of stakeholders in private banks to 26 per cent from 10 per cent, Information and Broadcasting Minister Ambika Soni said on Thursday.

"The cabinet has cleared banking laws (Amendment Bill 2011). It also approved increase of voting rights from 10 per cent to 26 per cent for private-sector banks," Soni told reporters after a cabinet meeting.

With the government staring at a slowing economy, triggered by a lack of reforms, the announcement could bring some cheer to investors, but needs to be cleared by parliament.