New Delhi, Apr 9 (KNN) The Modi government, if re-elected, is planning a comprehensive overhaul of the financial sector as part of its 100-day agenda, according to two individuals privy to the matter.

The roadmap entails privatisation of one or more public sector banks (PSBs) and a general insurance company, stake sales in five PSBs, creation of at least one mega-global bank, and strengthening of digital infrastructure, reported Mint.

These financial sector reforms are aligned with the government's Viksit Bharat 2047 plan, which outlines two roadmaps, one for the first 100 days and another for five years, aimed at strengthening the foundations of the economy.

One of the sources revealed that the reforms would also involve the complete stake sale and privatisation of the loss-making Industrial Finance Corporation of India (IFCI).

He also mentioned that the reforms would also involve the launch of an initial public offering (IPO) for India Infrastructure Finance Company Ltd (IIFCL) within weeks of the new government taking charge.

In the initial 100 days, the government may revisit the long-pending privatisation of two PSBs and lay out plans for stake sales in more than one general insurance company, as well as a possible merger of two or three general insurers after recapitalisation, according to the second source.

Furthermore, the government plans to consolidate PSBs further to create at least one mega-bank in the short term.

Finance Minister Nirmala Sitharaman has stated in an interview that India needs more banks that are "maybe three times the size of SBI (State Bank of India)," as SBI itself is not among the top 10 banks globally.

This would mean further consolidation of PSBs along the lines of the 2019 exercise, where as many as 10 PSBs were merged to create four large banks.

(KNN Bureau)