New Delhi: Government has shortlisted four mid-sized state-run banks for privatisation, under a new push to sell state assets and shore up government revenues, news agency Reuters quoting government sources said.
The four banks on the shortlist are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India, two officials told Reuters on condition of anonymity as the matter is not yet public. Two of those banks will be selected for sale in the 2021/2022 financial year which begins in April, Reuters reported.
Bank of India has a workforce of about 50,000 and Central Bank of India has 33,000 staff, while Indian Overseas Bank employs 26,000 and Bank of Maharashtra has about 13,000 employees, according to estimates from bank unions.
Customers having an account in any of these banks would be anxious about their money. But they should not worry because their money is completely safe. The government aims at making use of disinvestment proceeds to finance various social sector and developmental programmes and also to infuse private capital, technology and best management practices in Central Government Public Sector Enterprises.
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, while presenting the Union Budget FY 2021-22 in Parliament announced that government has approved a policy of strategic disinvestment of public sector enterprises that will provide a clear roadmap for disinvestment in all non-strategic and strategic sectors.
“A number of transactions namely BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others are proposed to be completed in FY 2021-22”, the Minister informed the house. She also added that other than IDBI Bank, a proposal of privatization of two Public Sector Banks and one General Insurance company will be taken up in the year 2021-22. The IPO of LIC would also be brought in through requisite amendments in the session itself. The Minister informed the house that she had estimated Rs. 1,75,000 crore as receipts from disinvestment in BE 2020-21 .