All PSU banks will be privatized

Employees, curious about markets like top officials, are meeting today to decide on the privatization of two public sector banks






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Employees, curious about markets like top officials, are meeting today to decide on the privatization of two public sector banks

The center will look into the privatization of two public sector banks in a meeting of senior officials on Wednesday. Senior members of Niti Aayog, RBI and the Treasury Department's financial services and economics departments will discuss potential candidates for privatization

NITI Aayog submitted its first list of PSBs last month. The names for Wednesday's privatization could be the Bank of Maharashtra and Indian Overseas Bank.

The list was first examined by the Division of Investment and Public Asset Management (DIPAM) and the Core Group of Secretaries for Disposal (CGD) under the direction of the Cabinet Secretary.

This comes after the government's ambitious drive to privatize PSUs, as announced by Finance Minister Nirmala Sitharaman in the 2021 budget. This would pave the way for the center to continue its divestment target of Rs 1.75 billion for the next fiscal year.

In her household speech, Sitharaman announced the privatization of two PSBs and a general insurance company in 2021-22. Under the new Public Sector Enterprise (PSE) policy for Aatmanirbhar Bharat, NITI Aayog is tasked with proposing the names of PSUs in strategic sectors that are to be merged, privatized or made into subsidiaries of other PSUs.

Public sector bank stocks rose after news of privatization.

On the stock exchanges, the Bank of Maharashtra's shares on the National Stock Exchange (NSE) rose 15.3 percent, Indian Overseas Bank rose 12 percent and Central Bank of India rose 10 percent.

Other PSB stocks, including Punjab and Sind Bank, Bank of Baroda, Indian Bank, UCO Bank, and J & K Bank, rose between 7.5 and 12 percent on the NSE, while Canara Bank, Bank of Baroda, PNB, and Union Bank of India and the State Bank of India (SBI) grew by up to 3 percent. In comparison, the Nifty PSU Bank Index rose 4.7 percent in intra-day trading, while the Nifty50 Index rose 0.2 percent.

The Aayog learned that it had compiled a report on PSBs based on their finances, debt and other issues and shortlisted them accordingly

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