This could happen only in India, a Chairman of Private bank is advising the Finance Minister to incorporate the stake sell in Public Sector bank by 50%. Private sector Kotak Mahindra Bank's chairman Uday Kotak has advised on behalf of Industry body CII to reduce the government stake in Public Sector Bank to 50% and move out of the ownership in the bank.
Many may appreciate it but our concern is little different. Whether this will not be a conflict of interest ? Who are eagerly waiting for purchasing the stake in the Public Sector Bank ?
CII chairman said “Aggressive disinvestment and monetization of assets can augment government revenues at a time when tax revenues have fallen sharply."
The argument given by him doesn't justify the reason to recommend the stake sell in PSBs. It is only government run institutions who are liable to pay for the national cause and not private entities.
It is highly anticipated that the stake sell in few of the Public Sector Banks will take place before budget. Government has already shown their intention to privatize few of the state run banks on many occasion and Pandemic has made their way out.
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