The way for privatization of Central Bank of India Indian Overseas Bank is almost clear, the government will sell stake in both

The government has almost cleared the way for the privatization of two banks Central Bank of India and Indian Overseas Bank. All the regulatory and administrative issues related to this were discussed in the recent meeting led by the Cabinet Secretary. Now it will be presented before the Group of Ministers on disinvestment or alternative mechanism for its approval.

privatization was announced in the budget by the finance minister

In the budget speech of 2021, Finance Minister Nirmala Sitharaman had announced the privatization of public sector banks. After this, NITI Aayog recommended the names of some banks for privatization to the Core Group of Secretaries headed by the Cabinet Secretary in April. The government had set a target of raising Rs 1.75 lakh crore through disinvestment for the financial year 2021-22. In February this year, there were reports that the central government has shortlisted 4 mid-sized banks for privatization. These include the names of Bank of Maharashtra, Bank of India (BoI), Indian Overseas Bank and Central Bank of India. Two of these four banks will be privatized in the financial year 2021-22.

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Opposition to privatization on behalf of bank union

The committee also deliberated on issues related to protection of interests of employees of banks prone to privatization. Once approved by the AM, the matter will be sent to the Union Cabinet headed by the Prime Minister for final approval. After the approval of the cabinet, necessary regulatory changes will be made for privatization. The bank union is opposing the privatization of these two banks. The United Forum of Bank Unions, a grouping of nine bank unions, had announced a nationwide bank strike on March 15 and 16 against the privatization of state-run banks.