New Delhi: The government has shortlisted four medium-sized state-owned banks for privatization to sell state assets and support state revenues, Reuters said, citing government sources.
The four banks on the shortlist are Bank of Maharashtra, Bank of India, Indian Overseas Bank and Central Bank of India, two officials told Reuters on condition of anonymity as the matter is not yet public. According to Reuters, two of these banks will be selected for sale in fiscal year 2021/2022, which starts in April.
Bank of India employs around 50,000 people and Central Bank of India 33,000, while Indian Overseas Bank employs 26,000 people and Bank of Maharashtra employs around 13,000 people, according to bank union estimates.
Customers who have an account with one of these banks would be concerned about their money. But you shouldn’t worry because your money is completely safe. The government intends to use divestment proceeds to fund various social sector and development programs, and also to promote private capital, technology and good management practices in public sector companies of central government.
The Minister of Finance and Corporate Affairs of the Union, Nirmala Sitharaman, when presenting the Union budget for the 2021-22 financial year in Parliament, announced that the government had endorsed a policy of strategic divestment of public sector companies that had a clear roadmap for the Divestment in all non-strategic and strategic sectors.
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“A number of transactions, including BPCL, Air India, Shipping Corporation from India, Container Corporation from India, IDBI Bank, BEML, Pawan Hans and Neelachal Ispat Nigam Limited, are expected to close in fiscal year 2021-22,” the minister said House. She added that in addition to IDBI Bank, a proposal to privatize two public sector banks and a general insurance company will be taken up in 2021-22. LIC’s IPO would also be initiated by the changes required at the meeting itself. The Minister informed the House that she had estimated Rs. 1.75,000 crore as income from divestment in BE 2020-21.
