Bank Privatization: Work is being done fast on the privatization of public sector banks (bank privatization 2022).
Inter-ministerial consultation is in its final stages. At the same time, after the completion of the legislative process, the Group of Ministers on disinvestment will finalize the names of banks for privatization.
Bank privatization: The process of privatization of public sector banks has almost started. It is being told that privatization can start by September. The government is set to remove the 20% cap on foreign ownership in PSU banks (PSBs) by amending the Banking Regulation Act. According to sources, two public sector banks have been shortlisted in these.
The government has made preparations
According to media reports, two government officials have given this information with the condition of anonymity. According to sources, preparations are on to introduce amendments in the current budget session of Parliament, but the cabinet approval for these major changes may take some time.
There is a possibility that the amendment may happen till the monsoon session. Sources have said that the government aims to ensure privatization of at least one bank by September.
This bank will become private
According to sources, work is being done at a fast pace on the privatization of public sector banks (bank privatization 2022). Inter-ministerial consultation is in its final stages.
At the same time, after the completion of the legislative process, the Group of Ministers on disinvestment will finalize the names of banks for privatization. All these processes will be completed at the earliest so that at least one bank can be privatized by the beginning of the next financial year.
Know government’s plan
Significantly, while presenting the budget for the current financial year, Finance Minister Nirmala Sitharaman had announced the privatization of two state-owned banks along with IDBI Bank in FY22. NITI Aayog has also shortlisted two PSU banks for privatization.
Sitharaman had also said that an insurance company would be sold in the current financial year. The government is also awaiting investors’ response on IDBI Bank to address any regulatory issues involved in the privatization of the two public sector banks.
Officials with knowledge of the matter said that Central Bank of India and Indian Overseas Bank were selected as potential candidates for privatization. That is, Indian Overseas Bank and Central Bank of India are the two candidates who have been in favor of privatization, although Bank of Maharashtra has also got in favor of this exercise next year or later.
