MUMBAI: Now the names of two more banks have been added to the list of divestment. According to the report of CNBC Awaaz, the Central Bank of India and Indian Overseas Bank will also now have divestment. In the first phase of disinvestment, both these banks will sell their 51 percent stake. The government has set a disinvestment target of Rs 1.75 lakh crore for the year 2022.
The central government can bring amendments in the Banking Regulation Act and the Banking Law Act for the privatization of these two public sector banks during the monsoon session. According to the report, the central government will also amend the Banking Regulation Act and some other banking laws for disinvestment.
government think-tank recently told the Core Group of Secretaries on Disinvestment, mentioning the names of these two banks A report has been submitted, which will be privatized in this financial year. The other members of the core group panel are Economic Affairs Secretary, Revenue Secretary, Expenditure Secretary, Corporate Affairs Secretary, Public Enterprises Secretary, Department of Investment and Public Asset Management (DIPAM) Secretary and Administrative Department Secretary. Once the main group of secretaries, headed by the cabinet secretary, approves the names, the report will go to the Alternative Mechanism (AM) for its approval. It will eventually go to the cabinet headed by the Prime Minister for final approval. In this way the disinvestment of banks will be finalized.
There is no need for customers to panic with the privatization of banks because the account holders of the banks which are going to be privatized will not suffer any loss. Customers will continue to get banking services as before. In fact, at this time the central government is paying more attention to disinvestment. The government wants to increase revenue by selling stake in public sector banks and wants to use that money on government schemes. The government has set a target of raising Rs 1.75 lakh crore from disinvestment in 2021-22.