Important meeting on privatization of banks: These 2 banks are likely candidates

New Delhi: Moving a step closer to the privatization of two public sector banks, a high-level panel headed by the Cabinet Secretary recently held a meeting to sort out various regulatory and administrative issues so that the proposal can be taken up with the Group of Ministers. to be kept together. On disinvestment or Alternative Mechanism (AM) for approval.

Sources said as per the announcement made by Finance Minister Nirmala Sitharaman in her 2021 budget speech, NITI Aayog has suggested some bank names for privatization to the Core Group of Secretaries on Disinvestment headed by the Cabinet Secretary in April.

The high-level panel meeting to deliberate on the recommendation of NITI Aayog on Thursday, June 24, sources said, said the panel would send the names of shortlisted PSU banks to the AM for consideration after tying up all the loose ends.

Chaired by the Cabinet Secretary, the members of the panel include secretaries from the departments of Economic Affairs, Revenue, Expenditure, Corporate Affairs and Legal Affairs as well as secretaries from the Administrative Department. The panel also has Secretary, Department of Public Enterprises, Department of Investment and Public Asset Management (DIPAM) as its members.

According to sources, the panel also examined issues related to safeguarding the interests of employees of banks, which are likely to be privatized.

After approval from the AM, it will go to the Union Cabinet, headed by the Prime Minister, for final approval. The change in the regulatory side to facilitate privatization will start after the cabinet nod.

Possible candidates for privatization of Central Bank of India and Indian Overseas Bank are being reported.

The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions including two PSU banks and an insurance company during the current fiscal. This amount is less than the record budget of Rs 2.10 lakh crore to be raised from disinvestment of CPSEs in the last financial year.

In her budget speech on February 1, Sitharaman had announced that the government proposes to privatize two public sector banks (PSBs) and one general insurance company in the year 2021-22.

“Apart from IDBI Bank, we propose to privatize two public sector banks and one general insurance company in the year 2021-22,” she had said.

The government last year consolidated 10 public sector banks into four and as a result, the total number of public sector banks came down from 27 to 12 in March 2017. The government has merged 14 public sector banks in the last four years. Read also: Love making videos on Instagram reels? Here’s how to increase your followers

In April last year, the government conducted the biggest ever consolidation exercise in the public sector banking sector, when six PSU lenders were merged into four to make them globally competitive. Read also: Syndicate Bank IFSC Code Will Change From July 1, Here’s How To Get New

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