The government authorities are have been making substantial preparations for the eventual privatization of the banking institutions. Privatization of banks mainly refer to the conversion of public sector banks into private. This can be done through a sale or other methods.
NITI Aayog has announced the financial institutions which would be privatized . They also stated which banks would be out of the sale. The center is now keeping in thought for privatizing two banks and one general insurance firm.
Punjab National Bank , Union Bank, Canara Bank , State Bank of India and Bank of Baroda are all included in the NITI Aayog released list . The authorities have mentioned that the names listed in the list are not eligible to participate in the process of privatization . In August 2019, the government consolidated four out of ten banks, bringing the total number from 27 to 12. According to the recommendation of Financial Ministry, these banks should not be put up for the purpose of privatization.
The Finance Minister Nirmala Sitharaman stated that two public sector banks and one general insurance company will be privatized. The current goal for disinvestment for the Financial year 22 announced by the government is Rs 1.75 lakh crores.
There are a number of banks that have been combined by the government in 2019 , according to that year’s plan. But the process is still ongoing.