Privatization fever is high on the government. From BCPL to LIC and the Railways all have gone that way. And now it is the turn of the Public Sector banks aka ‘Sarkari Banks’. After b. This includes the largest bank State Bank of India and the 2nd largest Punjab National Bank.
Soon only 5 banks would be under the Public Sector as rest are going to be privatized. In a mega privatization drive, the government would let go of its majority shares in more than half of its state-owned banks. The government is planning to sell its stake in:
- Bank of India
- Central Bank of India
- Indian Overseas Bank
- UCO Bank
- Bank of Maharashtra
- Punjab & Sind Bank
The idea is to have 4-5 government-owned banks said a government official as per reports from Livemint. Though the government has not made this official and the Finance Ministry has denied making a comment the move is under process. A plan would be laid out in a new privatization proposal the government is currently formulating, and this would be put before the cabinet for approval, said the government officials.
After last year’s bank merger the government made it clear that no more merges are on cards. The ides of privatization and reducing the public sector bank to 4-5 is however not something which is new. Former RBI governor D. Subbarao had earlier muted the idea. The idea is to have enhanced governance and management through private investment.