<h1>Conversion of preference shares into equity to bolster core capital of public sector banks, subject to shareholder and regulatory approvals.</h1> Conversion of Perpetual Non-Cumulative Preference Shares held by the central government in three public sector banks into equity is proposed, subject to shareholder and regulatory approvals. The conversion is intended to enhance Tier-1 capital by replacing non equity instruments lacking loss absorption capacity with equity, thereby increasing available funds for credit to productive sectors and supporting financial inclusion, with similar conversions to be considered for other banks where comparable instruments were issued.