New Delhi: The government may set up a panel to draw up a fresh list of public sector banks that can be privatised, people aware of deliberations said. The Centre wants to revisit its bank privatisation strategy after state-owned lenders turned profitable and several rounds of consolidation have reduced their number.
In April 2021, Niti Aayog recommended the privatisation of two state-run banks to the disinvestment department. The Central Bank of India and the Indian Overseas Bank were reportedly shortlisted, but no final decision was taken.
India may set up a panel to identify public sector banks that can be privatized, including mid- and small-sized ones. The move comes after state-owned lenders turned profitable and several rounds of consolidation reduced the number of banks. The committee, which may include officials from the Department of Investment and Public Asset Management, the RBI and Niti Aayog, will determine quantum of stake sale.
