Last Updated: January 05, 2023, 15:56 IST
The government is now considering privatising two banks and one general insurance firm.
In august 2019, the government consolidated four out of 10 banks, bringing the total number of public sector banks from 27 to 12.
Less than a month away from the Union Budget 2023, government officials are making extensive preparations for the eventual privatisation of banking institutions. NITI Aayog has recently announced the names of financial institutions to be privatised.
The government is now considering privatising two banks and one general insurance firm. In august 2019, the government consolidated four out of 10 banks, bringing the total number of public sector banks from 27 to 12.
According to a report by DNA, as per the recommendation given by Finance Ministry, all these shouldn’t be put up for privatisation.
In the released list of NITI Aayog, the government has no plan to privatise Punjab National Bank, Union Bank, Canara Bank, State Bank of India, Indian Bank and Bank of Baroda.
A government official has also revealed that no one involved in the government’s bank consolidation is eligible to participate in the privatisation process.
In the Budget address, Finance Minister Nirmala Sitharaman announced that two public sector banks and one general insurance company will be privatised. In 2019, the central government kicked off a mega-merger plan for Public Service Banks (PSBs) and the merger came to effect in April 2021.
According to the plan, PNB absorbed the Oriental Bank of Commerce and United Bank. Syndicate Bank was absorbed by Canara Bank. Both Andhra Bank and Corporation Bank were merged with Union Bank. Indian Bank and Allahabad Bank’s merger also comes into effect from April 1.
However, NITI Aayog has suggested the names of two lenders and the government is yet to finalise the names of banks to be privatised. The Finance Minister may announce some measures to boost financial inclusion and enhance the operational efficiency of PSBs in the upcoming Budget session which will begin on December 31.
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