Now the government has shortlisted four mid-sized state-run banks for privatisation. Earlier, the government was considering only two public sector banks but now it plans to privatise four banks.
According to a tweet by journalist Aadesh Rawal, the government has taken the call to do so. The four banks shortlisted are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India.
During the budget 2021, Sitharaman announced the plan to privatise two state-run banks, other than IDBI Bank. It is assumed that the banks which are not in the list of mergers will undergo privatisation process. The government is in the process of merging 13 banks into five banks.
In the past, an analyst said Punjab and Sind Bank and Bank of Maharashtra looked probable candidates for privatisation. This is mainly because of the six banks kept out of merger, Indian Overseas Bank, Central Bank and UCO Bank are under PCA (prompt-corrective action).