Business

PIB rejects media reports on bank privatization, no list shared by NITI Aayog on privatization of SBI, Canara Bank, PNB and others

January 7, 2023
Bharat Times

New Delhi: There has been a sudden stir over NITI Aayog’s list on bank privatization, which includes the country’s public sector banks State Bank of India (SBI), Punjab National Bank, Union Bank, Canara Bank, Indian Bank and Bank of Baroda. Refuting media reports, PIB has said that no such list has been shared by NITI Aayog.

While the unexpected buzz about privatization of these public sector banks cannot be traced, NITI Aayog had in fact released a list of banks for privatisation. The list released in March 2021 had excluded State Bank of India (SBI), Punjab National Bank, Union Bank, Canara Bank, Indian Bank and Bank of Baroda from the bank privatization list. In other words, these banks are not going to be privatised. (Also Read: How To Activate SBI WhatsApp Banking System Online Through SMS?)

The government said on 19 December 2022 that it would consider privatization of Public Sector Banks (PSBs) after consultation with the concerned department and regulator. Minister of State for Finance Bhagwat Karad had said in a written reply in the Lok Sabha, “The decision on disinvestment and selection in the matter of strategic sale has been assigned to the designated cabinet committee to consider issues related to terms and conditions etc.” Minister of State for Finance Bhagwat Karad in a written reply in the Lok Sabha stated the purpose under the Government of India (Transaction of Business) Rules, 1961.

In the Union Budget for the financial year (FY) 2021-22, he said, the government’s intention to privatize two PSBs and to approve the policy of strategic disinvestment of public sector enterprises (PSEs) were announced.

The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and an insurance company, during the current financial year. This amount is less than the record budget of Rs 2.10 lakh crore to be raised from CPSE disinvestment in the last financial year.

with PTI inputs