Four government banks will be sold this year, government preparations complete
According to reports, the PMO has told the top officials that all the procedures related to selling these four banks in private hands should be completed at the earliest.
The government has started preparing to sell its stake in four public banks. This process will be expedited in a few days. All the hurdles of privatization of these banks have been removed. The banks to be handed over in private hands include Punjab and Sindh Bank, UCO Bank, IDBI Bank and Bank of Maharashtra. According to sources, the process of selling these banks to private companies will be completed during the current financial year.
Orders to speed up the privatization process
According to reports, the PMO has told the top officials that all the procedures related to selling these four banks in private hands should be completed at the earliest. The PMO has been asked to take fast decisions in this direction. According to government sources, the government will sell its stake in these four banks. In fact, due to the decrease in tax collection due to the Coronavirus crisis, it is difficult to increase the revenue of the government. In such a situation, the government wants to raise money by selling these banks in private hands. This is the reason why emphasis is being laid on their privatization.
Government wants only four big banks
Actually, the government wants only four big banks in the country. On the other hand, the NPA of banks is continuously increasing. In order to improve the banking sector, more banks can become an obstacle in the steps being taken by the government in this direction, so the government wants to hand over more of its banks to the private sector. The government wants to privatize more than half of its banks. There are currently 12 government banks in the country, including IDBI. The government holds 41.17 per cent stake in IDBI Bank. If the government does not sell these banks, it will have to provide a big package for their bailout. Since the government has no money, it is not possible to do so. Now its way has been found that the government should start selling its stake in these banks.
