New Delhi, 16/2 (Ao Bureau) The central government has selected 4 public sector banks for the next round of privatization. Three government sources have given information about this. This decision to privatize state-run banks in the banking sector is considered a politically risky move, as it may affect millions of jobs. But now the Modi government is preparing to start the second phase of privatization of banks. The four banks which have been selected for privatization are Bank of Maharashtra, Bank of India, Indian Overseas Bank, and Central Bank of India. News agency Reuters has given this information by quoting two government sources in one of its reports. Two of these banks will be privatized in the financial year 2021-22.
The official said that in the initial phase the government is choosing small to mid-size banks for privatization. In the coming year, the decision to privatize other big banks can also be taken. However, the government will maintain its maximum stake in the country’s largest bank i.e. State Bank of India. SBI is also considered as a kind of strategic bank, through which the central government implements its many initiatives.
The government is preparing to fix the banking sector
No official information has been revealed by the Finance Ministry in this matter yet. Economists say that the contraction in the economy due to the epidemic has forced India to undergo major reforms. The Modi government is now considering taking necessary steps to correct the banking sector already struggling with the burden of debt. It is being said that if the banks also include loans during the epidemic, then there may be a huge increase in the number of stranded loans.