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Centre to assign panel to prepare list of PSBs for privatisation

Updated: May 16, 2023 04:49:44pm
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Centre to assign panel to prepare list of PSBs for privatisation

New Delhi, May 16 (KNN) The central government is expected to form an expert panel to make a list of Public Sector Banks (PSBs) that can be privatised, reported ET.

People privy of the matter told ET that centre is looking for ways to privatise PSBs as they have turned profitable and bigger, and fewer in number after several rounds of consolidation.

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NITI Aayog in April 2021 had recommended the disinvestment of two state-run banks to the disinvestment department.

Subsequently, the Central Bank of India and the Indian Overseas Bank were chosen for the purpose.

However, no further steps were taken in this direction, the report said.

“A new committee may be set up to identify lenders for privatisation, which include mid- and small-sized banks, and determine the quantum of the stake sale based on their performance, including their bad loan portfolio among other parameters,” a government official told ET.

The panel is likely to have officials from the Department of Investment and Public Asset Management, the Reserve Bank of India, and the NITI Aayog.

The official said that bank privatisation was part of a government strategy.

However, now  that all public sector banks have turned profitable, a reassessment of the situation is required.  (KNN Bureau)

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