The government will amend the Banking Regulations Act and some other banking laws for divestment of Central Bank of India, and Indian Overseas Bank. The two lenders might see 51 percent sale in the first phase of disinvestment, CNBC Awaaz has reported. NITI Ayog has shortlisted the two-state run banks privatisation, according to the report.
Finance Minister Nirmala Sitharaman had announced strategic divestment in two public sector undertaking banks and one general insurance company, in the next fiscal year during her speech while unveiling Budget 2021.
Sitharaman said the NITI Aayog had also been asked to come up with the list of companies that may be disinvested next. She also put disinvestment receipts at Rs 1.75 lakh crore for the fiscal year beginning April 1, 2021.
Central Bank of India, Indian Overseas Bank, Bank of Maharashtra and Bank of India are some of the names that may be considered for privatisation by the Core Group of Secretaries on Disinvestment.
The other members of the high-level panel are Economic Affairs Secretary, Revenue Secretary, Expenditure Secretary, Corporate Affairs Secretary, Secretary Legal Affairs, Secretary Department of Public Enterprises, Secretary Department of Investment and Public Asset Management (DIPAM) and the Secretary of administrative department.
An attractive VRS will make them lean and fit for takeover by the private sector entities that are keen to enter the banking space, PTI had said quoting sources. VRS is not forced exit but option for those who would like to take early retirement with good financial package, the sources said adding that it has been done in the past before the consolidation of some of the PSBs, the report said.