New Delhi, 21/8 (Ao Bureau): Now the names of two more banks have been added to the list of divestment. According to the report of CNBC Awaaz, Central Bank of India and Indian Overseas Bank will also now have divestment. In the first phase of disinvestment, both these banks will sell their 51 percent stake. The government has set a disinvestment target of Rs 1.75 lakh crore for the year 2022.
The central government can bring amendments in the Banking Regulation Act and the Banking Law Act for the privatization of these two public sector banks during the monsoon session. According to the report, the central government will also amend the Banking Regulation Act and some other banking laws for disinvestment.
The government think-tank has recently submitted a report to the Core Group of Secretaries on disinvestment mentioning the names of these two banks, which will be privatized in this financial year. The other members of the core group panel are Economic Affairs Secretary, Revenue Secretary, Expenditure Secretary, Corporate Affairs Secretary, Public Enterprises Secretary, Department of Investment and Public Asset Management (DIPAM) Secretary and Administrative Department Secretary. Once the main group of secretaries, headed by the cabinet secretary, approves the names, the report will go to the Alternative Mechanism (AM) for its approval. It will eventually go to the cabinet headed by the Prime Minister for final approval. In this way, the final seal will be given on the disinvestment of banks.