Of the 4 banks, 2 are to be privatized in the financial year 2021-22. In the banking sector, the government is considering selling stakes in mid-size and small banks as part of the first phase of privatization.
Bankers have been continuously protesting about the privatization of public sector banks. According to media reports, the privatization of Bank of Maharashtra, Indian Overseas Bank, Central Bank of India and Bank of India is going to take place.
The privatization of banks was announced in the budget presented on 1 February. Currently, there are plans for privatization of two public sector banks in the financial year 2021-22. It is being told in media reports that the name of Indian Overseas Bank, Bank of India, Bank of Maharashtra, Central Bank is mentioned in the list of privatization. However, no decision has been taken so far.
Of the 4 banks, 2 are to be privatized in the financial year 2021-22. In the banking sector, the government is considering selling stakes in mid-size and small banks under the first phase of privatization. It is being said that in the coming years, the government can also bet on big banks of the country.
Vivek Mittal, research head of VM Portfolio, told TV9 Hindi that the government wants to have only 5 banks in the country. Other banks will either be merged or they will be made private. It is being said that the government will merge those same banks whose exposure will be in the whole country.
Bankers protesting against the privatization of banks had taken a two-day strike in the past. There is also an atmosphere of skepticism among customers as to the potential impact on bankers. However, experts say that there will be no significant impact on customers by making public sector banks private. The bank’s services continue as before.
Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday that we are discussing with the government about the privatization of public sector banks and the process will be taken forward. He also said that improving financial health of banks is our priority. RBI is committed to use all its policy measures for economic recovery in the economy while maintaining price and financial stability.