If believes on ET Now Reports, the privatization of Bank of India, IOB, BOM & Punjab & Sindh Bank Starts Soon – The Union Government is likely to soon consider a proposal for the privatization of few Public Sector Banks along with some Insurance companies – As per ET Now reports, the government is planning to merge at least four unmerged banks and insurance companies along with Oil major BPCL & Concor, as a part of its next privatization push.
“The draft cabinet note for identifying strategic and non-strategic sectors has been sent for inter-ministerial consultations. A broader policy will look at sectors that have market imperfections due to the government’s presence, where the private sector can take the lead and ensure that the monopoly should not happen due to state-run companies. Sectors like banks, insurance, space, defence will be privatized,” a government source said.
The public sector bank in the list are Punjab & Sind Bank, IOB, Bank of Maharashtra, Bank of India along with state-run insurers such as National Insurance Company, United India Insurance and Oriental Insurance Company. The move comes after the government put the merger process of insurance companies on hold and aimed to focus on growth while infusing Rs 12,450 crore to improve their financial health.
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The stake sale process for IDBI bank has also kick started. The government remains hopeful that IDBI Bank will soon exit RBIs Prompt Corrective Action framework after it showed improvement on many parameters in the March quarter. The lender reported a profit after 13 straight quarters of net losses in Q4 FY20.
Meanwhile, the privatisation of BPCL and Concor will be key to meeting the mammoth Rs 2.1 lakh crore divestment target for FY21. Department of Investment and Public Asset Management (DIPAM) is hopeful that global players like Aramco, Petronas will be interested in BPCL post Covid-19 as well.
“We are looking to hold virtual roadshows for Shipping Corporation in August. By September, we aim to release the Expression of Interest for Concor,” the source added.
The government’s privatization push will be critical to meet its need for funds at a time when revenues on tax and non-tax front are hit due to Covid-19.
It’s fake news , there is no any move to privatise the bank of India
I think You must read this – https://www.moneycontrol.com/news/business/india-plans-to-reduce-number-of-state-owned-banks-to-just-5-5572841.html