Privatisation Of Public Sector Banks

Former RBI governor D Subbarao has suggested that the government should come up with a 10-year road map for privatisation of all Public Sector Banks (PSBs) as it would provide much needed predictability to stakeholders. Subbarao further said that the big bang approach to privatisation of state-owned banks is not desirable but at the same time the issue should not be put on the back burner. "Ideally, we should have a road map, maybe over a 10 year timeframe, to privatise all PSBs. "That will give much needed predictability to all stakeholders," he told PTI. Meanwhile, Subbarao said the government should also be thinking about corporatisation of public sector banks so that they come within the umbrella of uniform RBI regulation. In the Union Budget for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises. The government think-tank NITI Aayog has already suggest

The official said while the quantum of stake dilution of both the government and LIC is yet to be decided, the management control in IDBI Bank will be transferred in the strategic sale

While NITI Aayog has suggested names of two banks for privatisation, Centre is yet to make a provision for the divestment of govt stake sale below 51%

Banks clarify no such negotiation or event taking place

Book review of Transformational Leadership in Banking: Challenges of Governance, Leadership and HR in a Digital and Disruptive World

The policymakers could have chosen no better time than this financial year as the financial quality of the PSB balance sheets has improved this year compared with the last few years

Four to five PSBs have been suggested by the Niti Aayog and they will be discussed in the meeting, sources said

The only feasible way to have a healthy banking sector could be making it mostly private, along with two or three large, better-run government banks, writes T N Ninan

In this podcast, Business Standard's Subhomoy Bhattacharjee explains why the Centre again discussing the topic of government owned bank privatisation and more

Wants RBI to relax the rules on ownership in private sector banks

The government will refrain from distress sale of its entities, especially if they are in strategic sectors

It's not all gloom and doom in Indian banking

The call for privatisation gathered currency after diamond jeweller Nirav Modi allegedly colluded with some officials of PNB to fraudulently obtain guarantees