So some public banks to be privatized for 'these reasons'

Only 5 to 6 government banks to be existed in the coming time, others to be privatized

JULY 21 (WTN) - If everything continues to happen according to the plan and intention of the government, then in the coming time, the number of nationalized public sector banks may remain just 5 in the country. Yes, in fact, the central government is planning to privatize more than half of the country's existing state-owned banks. And if this happens, there will be only 5 nationalized state-owned banks in the country after some time.

Actually, to improve the condition of the banking industry, the decision of privatization is being taken by the Central Government. According to the information, under a scheme, the government can sell the majors' stakes in Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra, and Punjab and Sindh Bank in the first phase.

For your information, let's know that some government committees and RBI (Reserve Bank of India) have suggested to the government that there should not be more than five government banks in the country. But, now the government has already clarified that no more public sector banks will be merged. So in these circumstances, the government may have no other option but to sell its stake in the public sector banks.

Let us know that at present, there are 12 government banks in the country, and the government intends that there should be only 5 or 6 government banks in the country. You might also know that the government has merged 10 state-run banks and converted them into 4 nationalized banks this year. In the year 2017, where there were 27 nationalized banks in the country, now the number of nationalized banks in the country remains 12.

Indeed, the Coronovirus infection epidemic has badly affected the economy of the country. As well as lockdown and other reasons have decreased the pace of the economic development of the country. In such a situation, the central government is struggling with a big cash problem. At the same time, the continuously increasing NPA of the banks is also proving to be a headache for the central government. For these reasons, the government is working on a privatization plan to help to raise the capital by selling assets to non-core companies and sectors. And under this, the government is preparing a new privatization proposal which will be presented before the cabinet for approval.

However, the government's privatization plan of the banks can be implemented when the number of loans stuck during the current financial year 2020-21 can increase. It is believed that disinvestment in the current financial year is not possible at the moment. This is why, because the pace of economic progress is not going to benefit much more than disinvestment in the banks at this time.

But, now the government has planned to privatize some public sector banks, then it will be implemented at some time or the other. But, it is also certain that this step of the government will be fiercely opposed by the bank employees and the opposition.