New Delhi:
Progress is underway for the privatization of two public sector banks following the announcement by Finance Minister Nirmala Sitharaman, Department of Financial Services secretary Sanjay Malhotra said Monday.
In the Union budget for 2021-22, the government announced its intention to privatize two public banks (PSBs) in the year and adopted a policy of strategic divestment of public companies.
“As far as the privatization of banks is concerned, there is already a statement on the floor of the home of the finance minister for the creation of a facilitating facility and early action is being taken to this end,” he said during an official function.
In the Union budget for fiscal year 2021-22, the government had announced its intention to privatize two PSBs in the year and adopt a policy of strategic divestment of state-owned companies, Ms Sitharaman had said in parliament.
Government think tank NITI Aayog has already presented two banks and an insurance company to the core group of secretaries on divestment for privatization. According to sources, Central Bank of India and Indian Overseas Bank are likely candidates for privatization.
Under the process, the core group of secretaries, led by the Cabinet Secretary, will send its recommendation to Alternative Mechanism (AM) for approval and finally to the Cabinet led by the Prime Minister for the final nod.
The members of the core group of secretaries include Secretary of Economic Affairs, Secretary of Income, Secretary of Expenses, Secretary of Corporate Affairs, Secretary of Legal Affairs, Secretary of the Public Enterprises Department, Secretary of the Investment Department and Public Asset Management (DIPAM) and a secretary of the administrative department.