In the budget presented in February, Finance Minister Nirmala Sitharaman had announced the privatization of two public sector banks and an insurance company.
Bank Privatization Latest News Today: The latest update regarding bank privatization is that the central government has shortlisted the names of 2 banks for disinvestment. According to media reports, the government will sell its stake in Central Bank of India and Indian Overseas Bank. According to the report of CNBC Awaaz, in the first phase of disinvestment, the government can sell 51 percent stake in both the banks.
For disinvestment, the central government will make changes in the Banking Regulation Act. Discussions with the central bank RBI and changes in some other laws are also being said. Let us inform that in the first week of this month, NITI Aayog had recommended the names of Central Bank of India and Indian Overseas Bank for disinvestment. The commission was entrusted with the responsibility of deciding the names of two public sector banks and one insurance company for privatization.
What will happen to bankers and customers?
Whenever there is a discussion about the privatization of banks, the question that arises is what will happen to lakhs of employees and crores of customers of the bank! It has been clarified earlier that customers will continue to get services as before, only formal changes will take place. At the same time, no sword will hang on the job of bank workers.
According to a report by ANI, Finance Minister Nirmala Sitharaman had earlier on 16 March assured that the interests of all the employees of the banks which are to be privatized will be taken care of. From their salary to pension… all facilities will be taken care of.
Explain that the central government has set a target of raising Rs 1.75 lakh crore from disinvestment in public sector companies and financial institutions in the current financial year. Privatization of two public sector banks and one general insurance company is also part of the government’s goal.
The names of these 4 banks were revealed
In the budget presented in February, Finance Minister Nirmala Sitharaman had announced the privatization of two public sector banks and an insurance company. After this there were reports that the 4 mid-sized banks that the government has shortlisted for privatization are Bank of Maharashtra, Bank of India (BoI), Indian Overseas Bank and Central Bank of India. The names of India (Central Bank of India) are included. After reviewing the status of all the banks, the responsibility of suggesting names was entrusted to NITI Aayog.
What was the name assigned to the core committee?
NITI Aayog reviewed the banks and submitted the name to the Core Group Committee. The committee also includes Secretary of Economic Affairs, Secretary of Corporate Affairs, Secretary of Legal Affairs, Secretary of Revenue, Secretary of Expenditure, Secretary of Department of Public Enterprises, Secretary of Department of Investment and Public Asset Management (DIPAM) and Secretary of Administrative Department. Now according to reports, it is being told that the central government will sell its stake in two banks… Central Bank of India and Indian Overseas Bank.
Shares of both the banks jumped
After the talk of disinvestment in media reports, the shares of both the banks saw a jump of up to 20 percent today. According to the reports surfaced from the stock market, the share of Central Bank of India was trading up 20 per cent at Rs 24.30, while the stock of Indian Overseas Bank was trading up 19.80 per cent at its one-year high of Rs 23.60. Experts say that the process of disinvestment may take time.
