Wheels set in movement for privatisation of 4 PSBs


New Delhi/Mumbai, Aug 18

Prime Minister Narendra Modi’s workplace has requested officers to hurry up the method of trimming authorities stakes in no less than 4 primarily state-owned banks throughout the present fiscal, in response to two officers conversant in the discussions.

The sources stated the 4 lenders are Punjab & Sind Bank, Bank of Maharashtra, UCO Bank and IDBI Bank, through which the federal government owns majority stakes via direct and oblique holdings.

New Delhi needs to overtake the banking sector and can also be pushing the privatisation of banks and different state-run firms to assist elevate funds for budgeted spending amid a fall in tax collections as a result of financial downturn attributable to the pandemic.

The PMO wrote a letter to the Finance Ministry earlier this month asking it to expedite the method of privatising these lenders within the present monetary yr, stated one authorities supply with direct information of the matter.

“The process of privatising the banks has started,” the individual stated, including some consultations had already taken place. The PMO and lenders didn’t instantly reply to requests for remark, whereas the Finance Ministry declined to remark.

The sources, who declined to be named because the discussions are personal, famous the federal government’s timeline is aggressive and is likely to be a problem given the present market situations.

Currently, there are a dozen public sector banks along with IDBI, through which the federal government owns 47.11% whereas the state-owned insurance coverage behemoth Life Insurance Corporation owns 51% stake. — Reuters


Lenders into account

  • The 4 lenders are Punjab & Sind Bank, Bank of Maharashtra, UCO Bank and IDBI Bank, through which the federal government owns majority stakes via direct and oblique holdings
  • Currently, there are a dozen public sector banks along with IDBI, through which the federal government owns 47.11% whereas the state-owned insurance coverage behemoth LIC owns 51% stake

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