Finance ministry plans to form abank holding company and transfer a part of the Rs 15,888 crore allocated for bank recapitalization to the company.    
 
 According to top sources from finance ministry, the proposed holding company would leverage the fund to raise debt and provide equity to state-run lenders. 
 
 The money can be raised in India or abroad, sources said, indicating that the proposed holding company will tap overseas markets also to access funds. 
 
 The company is expected to be modelled on the lines of the Government Investment Corporation (GIC) of Singapore, although it will confine its activities to providing equity to public sector banks. 
 
 While enacting a legislation for the holding company, the government is also expected to amend the Bank Nationalization Act and the State Bank of India Act.
 
 According to the plan, the holding company - which will be wholly-owned by the government initially - will be permitted to list and raise funds later.
 
 This is expected to help the government save some funds which it has been allocating to banks to ensure that they have sufficient capital to meet the regulatory and growth requirements.