The work of privatization of public banks is going on since the proposal given in the budget speech of the Finance Minister. Privatization of two more public banks may happen soon. For this, a meeting of the high level panel was held recently.
bank privatization
Two public sector banks may be privatized soon. This includes Central Bank of India and Indian Overseas Bank. For this, a high-level panel chaired by the Cabinet Secretary held a meeting recently. In which the strategy was prepared after discussing various regulatory and administrative issues. According to sources, the names of some banks have been suggested for privatization to the Core Group of Secretaries on Disinvestment in this meeting. A final decision on this can be taken soon.
The meeting of the high-level panel to deliberate on the recommendation of NITI Aayog was held on June 24. Sources say that the panel will be sent to AM to remove all the weak points and consider the names of the shortlisted PSU banks. After approval from the AM, it will be sent to the Union Cabinet, headed by the Prime Minister, for final approval. The change in regulatory side to facilitate privatization will start after the approval of the cabinet.
The interests of the employees were also discussed
According to sources, the panel also discussed issues related to safeguarding the interests of employees of banks in the meeting. Possible candidates for privatization of Central Bank of India and Indian Overseas Bank are being told. Headed 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 of the Administrative Department. Apart from this, the Department of Public Enterprises, Department of Investment and Public Asset Management (DIPAM) Secretary are also on the panel as its members.
Government to raise 1.75 lakh crore from stake sale
According to 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. It has set a target of raising 1.75 lakh crore from stake sale in public sector companies and financial institutions, including two PSU banks and an insurance company. This amount is less than the record budget of 2.10 lakh crore to be raised from CPSE disinvestment in the last financial year.
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