Government think tank on Bank Privatization, NITI Aayog has shared the release list of the bank to the finance ministry. This list covers the name of the bank which would be released from the ongoing sale. These banks are Punjab National Bank, Union Bank, Canara Bank, State Bank of India, Indian Bank and Bank of Baroda. This is as per the recommendation of the Ministry of Finance as these banks were consolidated recently.
The other banks which are now the potential candidates for the sale are Bank of India, UCO Bank, Bank of Maharashtra, IOB & Central Bank of India and others.
The government is now considering privatizing two banks and one general insurance firm. In August of 2019, the government consolidated four out of ten banks, bringing the total number of public sector banks in the nation down from 27 to 12.
Punjab National Bank, Union Bank, Canara Bank, State Bank of India, Indian Bank and Bank of Baroda are all on the Niti Aayog-released list. Government officials have said that they have no plans to privatize these financial institutions.
A government official has revealed that no one involved in the government’s bank consolidation is eligible to participate in the privatisation process. It was announced in the budget address by Finance Minister Nirmala Sitharaman that two public sector banks and one general insurance company will be privatized. The current disinvestment goal for FY22 announced by the government is Rs 1.75 lakh crore.
