New Delhi, April 3 -- The government has rekindled discussions with public sector banks (PSBs) on offering stock options to eligible employees, reigniting hope for this long-standing demand of the lenders, according to a report by Economic Times.

Quoting sources familiar with the development, the Economic Times reported that the proposal to introduce employee stock ownership plans (ESOPs) has been on hold for some time, but it may gain momentum after the Lok Sabha elections. "There have been talks with the government last month on issues pertaining to PSBs, including ESOPs," a bank executive told ET, adding that lenders will soon present a framework to the government.

Livemint could not independently verify the development.

A governmen...