It is reported by a leading newspaper that Government is seriously discussing on the privatization of the listed Public Sector Banks. The list of Public Sector Banks includes Punjab & Sind
Bank, Bank of Maharashtra and Indian Overseas Bank, which are not part
of the ongoing consolidation and merger plan.
A selected group of top government officials has begun discussions on the proposal that originated from government think tank Niti Aayog. There are possibility that few of the Public Sector Banks with lower presence will be privatize.
Niti Aayog has advised the Government to allow long term private capital in to the banking sector. It has also suggested giving banking licenses to select industrial houses with the caveat that they don’t lend to their group firm.
Niti Aayog is not in favor of future bailout to these banks on taxpayers money. The discussion of privatizing the Public Sector Bank is at very early stage and no decision has been taken yet.
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