The Modi government of the Center is preparing to bring its stake in 6 big banks of the country to 51 per cent in the next one year. According to sources, the Reserve Bank of India has suggested to the central government to sell the stake of these banks in the next 12 to 18 months.
The Modi government of the Center is preparing to bring its stake in 6 big banks of the country to 51 per cent in the next one year. According to sources, the Reserve Bank of India has suggested to the central government to sell the stake of these banks in the next 12 to 18 months. This may be an important step of the Modi government in speeding up the disinvestment process. According to Business Standard report, State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Union Bank of India and Bank of India have been selected for this. According to sources, the suggestion of RBI has been taken positively by the Central Government and its process can be started soon. By reducing its stake in 6 banks, the central government can get Rs 43,000 crore.
This decision of disinvestment of banks is different from privatization of 6 major state-run banks. Earlier in July, a report claimed that the government was in the process of privatizing 6 banks. These include Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sindh Bank.
According to the proposal, the government is set to sell a large stake in these banks. By doing so, these banks will run in private hands. According to the report, the Modi government is in the mood to maintain only 4 or 5 government banks in the country. However, no official comment has been made by the central government regarding these reports.
Explain that the Reserve Bank of India and several government committees have recommended to maintain only 5 state-owned banks in the country. A senior official of a government bank also said about the government’s plan, ‘The government has already said that now the banks will not merge. In such a situation, now there is an option to sell the stake. Earlier on April 1, the government merged 10 banks and converted them into 4 banks. At present, there are 12 government banks in the country, of which 27 were in 2017 in 3 years ago.
