Big news is coming about bank privatization. Apart from Central Bank of India and Indian Overseas Bank, it can also sell its stake in BoI.
New Delhi: Big news is coming about bank privatization. The central government had announced the privatization of two public sector banks in the budget presented in February. According to the announcement made by the Finance Minister, the government was planning to sell stake in Central Bank of India and Indian Overseas Bank, but now the news is coming that the government is planning to sell Bank of India. can also sell its stake in That is, Bank of India can also go into private hands.
According to the report published in the English newspaper Times of India, NITI Aayog has also recommended the names of two banks, but now news is coming that the government can also sell its stake in Bank of India. The name of Bank of India is also appearing in the list of privatization.
How much is
the share price of banks Talking about the share price of these banks in the stock market, the market value of Central Bank and Indian Overseas Bank is Rs 44,000 crore, in which the market cap of IOB is Rs 31,641 crore.
According to sources in the Finance Ministry, the proposal of NITI Aayog is currently being considered in the Departments of Disinvestment (DIPAM) and Financial Services (Bankibg Division). NITI Aayog has submitted the names of public sector banks which are to be privatized in the current financial year under the disinvestment process to the Core Committee of Secretaries on Disinvestment. NITI Aayog has been entrusted with the responsibility of choosing the names of two public sector banks and one insurance company for privatization. The announcement related to privatization was made in the budget for the financial year 2021-22.
thinking now
According to sources in the Finance Ministry, the proposal of NITI Aayog is being considered in the Departments of Disinvestment (DIPAM) and Financial Services, but a decision will be taken soon. After the recommendation of NITI Aayog, it will be considered by the Core Group of Secretaries constituted on disinvestment headed by the Cabinet Secretary. The other members of this high level group are Secretary, Economic Affairs, Revenue Secretary, Expenditure Secretary, Corporate Affairs Secretary, Law Secretary, Secretary, Department of Public Enterprises, Secretary, Department of Investment and Public Asset Management (DIPAM) and Secretary, Administrative Department. .
How much time will it take?
According to sources, DIPAM will discuss the proposal with the Department of Financial Services and discuss legislative changes required for privatization of public sector banks. At present, how long it will take for the privatization of banks depends on regulatory changes. Along with this, discussions will also be held with RBI, only after that some decision will be taken.
Which banks can be privatized
Let us tell you that at this time the eyes of the NITI Aayog are on those 6 banks which were not involved in the merger. Bank of India, Overseas Bank, Central Bank, Bank of Maharashtra, Punjab and Sind Bank and UCO Bank are included in this list.
