NITI Aayog Has Released a List For Public Sector Bank Privatization

NITI Aayog has released the list of Government bank which would be protected from the ongoing PSB Privatization. This list includes all the big six Punjab National Bank, Union Bank, Canara Bank, State Bank of India, Indian Bank and Bank of Baroda. This is as per the recommendation of the Ministry of Finance as these banks were consolidated recently.

It means the potential players for the Bank Privatization are Bank of India, UCO Bank, Bank of Maharashtra, IOB & Central Bank of India.

The government is now considering privatizing two banks and one general insurance firm. In August of 2019, the government consolidated four out of ten banks, bringing the total number of public sector banks in the nation down from 27 to 12. 

Also Read - Public Sector Bank Merger, Can Government Do it Without Powerful Trade Unions?

Punjab National Bank, Union Bank, Canara Bank, State Bank of India, Indian Bank and Bank of Baroda are all on the Niti Aayog-released list. Government officials have said that they have no plans to privatize these financial institutions. 

A government official has revealed that no one involved in the government's bank consolidation is eligible to participate in the privatisation process. It was announced in the budget address by Finance Minister Nirmala Sitharaman that two public sector banks and one general insurance company will be privatized. The current disinvestment goal for FY22 announced by the government is Rs 1.75 lakh crore.