The government of India is planning to initiate the process to privatize one more state-run bank. This will happen till the end of the second quarter of the upcoming financial year.
As we already know, the divestment of IDBI Bank Ltd. has already been proposed, and this is in addition to that.
Another State Owned Bank To Be Privatized
The name of the bank that will be privatized hasnt been finalized yet, but the core group of secretaries are working on the deliberations of the disinvestment. As per reports, the final process should be over by the end of the second quarter in FY 22-23.
Officers and employees’ unions of IDBI Bank are concerned with the Central Government and LIC’s decision to sell their stake to private players. The Government will begin roadshows for investor outreach shortly. Those sharing this sentiment are All India IDBI Officers’ Association, IDBI Officers’ Organisation, All India IDBI Employees Association, and IDBI Karmachari Sangh.
The Unions recalled the hardship faced by the depositors of the erstwhile Punjab & Maharashtra Co-operative Bank (PMC Bank) and Lakshmi Vilas Bank, and YES Bank in the recent past.
It said that it demands the re-classification of IDBI Bank as a Public Sector Bank with GoI (45.48% stake) and LIC (49.24%) as promoters, and GoI’s shareholding in IDBI Bank to be always “not less than 51%”.
While outlining the nation’s budget for the current financial year in February, FM Sitharaman announced that the government will seek buyers for two state-run banks by March 2022.
Privatization Of Two Banks Deferred
In the Union Budget meet on February 1, FM Niramala Sitharaman announced the government’s plan to conduct privatisation of two more public sector banks, besides IDBI Bank, along with one general insurance company, in the financial year FY22 (2021-2022).
The privatisation process will be a part of the government’s disinvestment drive of Rs 1.75 lakh crore.
The two public banks known to be shortlisted for privatisation are Bank of Maharashtra and the Indian Overseas Bank.
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