Government to keep majority stake in financial holding company

The government has said it will maintain majority stake in the proposed financial holding company for the state-run companies. "We agree that there is a long-term need...there is need for long-term investment in the banking system," financial services secretary D K Mittal said.

He said, today PE ( price earning) valuation is very low because of perception and also because of some reality. "So we would like to do (tap capital market) when we get good price from the market till that time government would be putting in money," he added.