- Government may sale its stake in Central Bank and Indian Overseas Bank
The market value of these banks based on the current share price is Rs 44,000 crore.
NITI Aayog has submitted names to the Core Committee on Disinvestment of Secretaries
- The central govt had declared the privatization of two banks in the general budget declared in February. As per, the central govt can sell its stake in Central Bank of India (CBI) and Indian Overseas Bank (IOB). As per sources, Niti Aayog has suggested the names of two banks for this. It is reviewed by the inter- minister before the Union Cabinet puts its seal of approval.The government has one more option, can also sale its stake in Bank of India.
NITI Aayog has submitted to authorities of the Core Committee of on Disinvestment the names of Public sector banks which are to be privatized in the current financial year.
NITI Aayog handed over names
The Commission has submitted names to the Core Committee of Public Sector Enterprises Banks. The members of the committee includes economic affairs secretary,legal affairs secretary, revenue secretary,investment and public asset management secretary , corporate affairs secretary,expenditure secretary , public undertaking secretary and administrative department secretary.
DIPAM will consider the proposal with the Department of Financial Services. They will discuss judicial changes require to privatize state-run banks. How long the privatization of banks will take time, it will depend on regulatory changes and comprehensive discussion will have to be done with the RBI in this matter.
The government had newly cleared the deck for the sale of government stake in IDBI Bank. For privatization, NITI Aayog is already watching 6 banks that were not involved in the merger. This includes BOI, IOB and Central Bank,UCO Bank, Bank of Maharashtra, Punjab and Sind Bank.The govt want to sale its stake in financial institutes, an insurance company and in public sectors. The Govt has set a target to raise RS 1.75 lakh crore in the budgets. As per Nirmala Sitharaman the Finance Minister said,” The interests of the employees of these banks will be fully protected”.