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India aims to pare PSU bank count to just five: sources
Why is it in news?
- According to some Government and Banking sources, India is looking to privatise more than half of its state-owned banks.
- Governments wants to reduce the number of government-owned lenders to just five as part of an overhaul of the banking industry.
Details (As per Governmemt Officials):
- The first part of the plan would be to sell majority stakes in Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sind Bank.
- The plan would be laid out in a new privatisation proposal the government is currently formulating.
- Last year, the government had merged 10 state-owned banks into four.
Context:
- The country is strapped for funds due to lack of economic growth caused by the COVID-19 pandemic.
- The Centre is working on a privatisation plan to help raise money by selling assets in non-core companies.
- Several government panels and the RBI have recommended a maximum of five state-owned banks.