Now a new update has come out regarding the privatization of government banks. The government has now started making new preparations for the privatization of government banks. The government is considering forming a panel for this. The government has entrusted the responsibility to NITI Aayog and RBI to prepare the list of banks.
Along with better performance, public sector banks have also reduced bad loans. In such a situation, there is once again discussion about privatization of many banks. Actually, the issue of privatization of public sector banks does not seem to be resolved. Now the Finance Ministry has asked NITI Aayog and Reserve Bank of India to prepare a new list. During the budget of 2021-22, Finance Minister Nirmala Sitharaman had talked about privatization. Let us tell you that in the recent past, the Central Government has made major changes in many public sector banks. Within the last three years, the Central Government has reduced the number of public sector banks from 27 to 12.
New list will be made
According to a Live Mint report, a new panel with representatives from the Finance Ministry, NITI Aayog and the Reserve Bank of India is being considered to prepare a new list of candidates for privatization. NITI Aayog recommended privatization of two public sector banks and has also put its suggestions before the Finance Ministry. These include Central Bank of India and Indian Overseas Bank.
The report also said that these two banks were discussed by Finance Minister Nirmala Sitharaman in the budget of 2021-22. Along with this, privatization of IDBI Bank and a general insurance company was also announced. But due to some reasons it was stopped and now its exercise is expected to start again in view of 2024.
Consider making a panel
The central government is considering forming a panel to identify medium and small-sized banks for privatization. According to the report, the panel can also decide how much stake the government will reduce in banks. Besides, a decision can also be taken on the weightage given to banks having better financial parameters and reducing bad loans.
Let us tell you, before the proposed privatization process, banks have merged weak banks into big banks to strengthen small banks. A total of 10 public sector banks were merged from 1 April 2020.
Now these are 12 PSB banks
The 12 private sector banks include State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Punjab and Sindh Bank, Indian Bank, Union Bank of India, Bank of India, Bank of Maharashtra, Central Bank of India, UCO Bank and Indian Bank. Overseas banks are included.