Government May Privatize Few Public Sector Banks

ET Prime has reported that Government May Privatize Few Public Sector Banks. It is believed that a selected group of top government officials has begun discussions on the proposal that originated from government think tank Niti Aayog. There are possibility that few of the Public Sector Banks with lower presence will be privatize. The list of such banks may include Punjab & Sind Bank, Bank of Maharashtra and Indian Overseas Bank, which are not part of the ongoing consolidation and merger plan.

Niti Aayog has advised the Government to allow long term private capital in to the banking sector. It has also suggested giving banking licences to  select industrial houses with the caveat that they don’t lend to their group firm. Niti Aayog is not in favor of future bailout to these banks on taxpayers money. The discussion of privatizing the Public Sector Bank is at very early stage and no decision has been taken yet.

Read – SBI Batted for Some Public Sector Banks Privatization