New Delhi: The government has given clarification on selling stakes in two public sector banks. Finance Minister Nirmala Sitharaman said that the Union Cabinet has not taken any decision on the privatization of two public sector banks.
The Finance Minister said that in the Union Budget for the financial year 2021-22, the government had announced the privatization of two public sector banks and strategic disinvestment of public sector enterprises in the current financial year.
The government is doing everything possible to ease the way for the privatization of two public sector banks. Due to this, preparations are being made to bring the Banking Law Amendment Bill in the winter session of Parliament.
This will make it easier for the government to privatize two public sector banks. Finance Minister Nirmala Sitharaman had announced the privatization of two public sector banks (PSBs) under the disinvestment program while presenting the budget for 2021-22 in February this year.
The target has been set to raise Rs 1.75 lakh crore from disinvestment in the current financial year.
51 to 26 percent will be the stake
Sources said the minimum government stake in PSBs is likely to be reduced from 51 percent to 26 percent through the Banking Laws (Amendment) Bill, 2021, to be introduced during the session. However, the final decision regarding the timing of the introduction of this bill will be taken by the Cabinet.
Which banks are involved
Central Bank of India, Indian Overseas Bank, Bank of Maharashtra, Bank of India to name a few which can be considered for privatization.
Sources say that before privatization, these banks may bring attractive Voluntary Retirement Scheme (VRS) for their employees.
Bankers are protesting
The All India Bank Officers’ Confederation (AIBOC) observed a nationwide shutdown on December 16-17 during the winter session against the privatization plan of public sector banks.
Due to this, there was a big problem in the banking business. About 9 lakh bankers had participated in this strike.