Government officials are making extensive preparations for the eventual privatisation of banking institutions (Bank Privatization in India). Niti Aayog has announced which financial institutions would be privatised and which will be left out of the sale. The government is now considering privatising two banks and one general insurance firm.
In August of 2019, the government consolidated four out of ten banks, bringing the total number of public sector banks in the nation down from 27 to 12. All these banks, according to the Finance Ministry’s recommendation, shouldn’t be put up for privatisation.
Punjab National Bank, Union Bank, Canara Bank, State Bank of India, Indian Bank and Bank of Baroda are all on the NitiI Aayog-released list. Government officials have said that they have no plans to privatise these financial institutions. A government official has revealed that no one involved in the government’s bank consolidation is eligible to participate in the privatisation process.
It was announced in the budget address by Finance Minister Nirmala Sitharaman that two public sector banks and one general insurance company will be privatised. The current disinvestment goal for FY22 announced by the government is Rs 1.75 lakh crore.
A number of banks have been combined by the government in 2019, according to data obtained from the consolidation plan created that year; nevertheless, the process of their integration is still waiting, though it may be finished soon.
