Instead Of Merging Govt Banks, They Will Be Sold To Private Investors


Sheetal Bhalerao

Sheetal Bhalerao

May 22, 2024


Instead Of Merging Govt Banks, They Will Be Sold To Private Investors

It appears that the center is not currently considering any merger of government banks as now they want to move forward with the target of privatization of public sector banks. 

No More Bank Mergers 

So, the government will not merge these banks, instead  privatize them. 

They are planning to start working on this scheme from the beginning of the financial year 2025. 

Till date, the government has merged many public sector banks with each other and now they are planning to work on a new plan.

So far almost 15 banks have merged in the country since 2017 and with this there were 27 public sector banks which are now reduced to 12.

But, in its new plan, the government will not merge them, instead is making a new plan to make the banking sector strong and convenient. 

It seems that merger of public sector banks is not seen as a better option to the government, hence they are now working on a new plan for these banks.

Improvement In Banks Condition

Prior to this, the media reported that if BJP returns, the Finance Ministry can merge government banks because the condition of the banks had improved due to the earlier bank merger. 

And why not! As at the time of merger, the government also injected capital into these NPA banks, showcasing improvement in the condition of the banks.

In this latest development, the government is considering selling its stake in banks.

To be specific, the center is planning to first sell its stake in IDBI Bank in the financial year 2025, as per the media reports.

Interestingly, this news has been going on for almost 2 years. 

When it comes to stakes, the government is holding 45 percent stake in IDBI Bank and LIC holds 49.24 percent stake. 

The government wants to sell its and LIC’s stake, which means that together the government can sell 60.7 percent of this bank. 

Once this happens, the bank will go completely private. 

So far, the players such as Kotak Mahindra Bank, CSB Bank and Emirates NBD had shown interest in buying a stake in this bank.


Sheetal Bhalerao
Sheetal Bhalerao
  • 633 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online