In order to achieve the target of 1.75 lakh crore privatization in the financial year 2021-22, two public sector banks and one insurance company will be privatized.
Banks have slowed down the pace of sale of their properties to raise funds.
The Modi government has set a big target of privatization and disinvestment for the current financial year (2021-22) and the government is trying to achieve this in any case. Apart from this, in the next three years, the government also wants to collect 2.5 lakh crore fund through asset monetization. In order to achieve the target of 1.75 lakh crore privatization in the financial year 2021-22, two public sector banks and one insurance company will be privatized.
As the process of privatization of banks is speeding, state-run banks have slowed down the pace of sale of their properties to raise funds. According to the Times of India report, those banks which have been out of the merger process in the last two years, especially those banks have slowed the pace of asset monetization. They believe that if they do not sell their property, then they will get more value in the market. Investors will be more interested in those banks which have other businesses besides banking and also have a lot of assets.
The NITI Aayog has asked the government to keep those banks out of the privatization list that have been merged in the last two years. In this way, SBI, PNB, Bank of Baroda, Canara Bank, Union Bank and Indian Bank have been left out of the privatized list. At present, there are 12 government banks in the country. In this way, the other six banks – Bank of Maharashtra, Bank of India, Indian Overseas Bank, Central Bank of India, Punjab and Sindh Bank and UCO Bank are at the forefront of the privatization race.