Privatisation Of Public Sector Banks

During the PSB Manthan earlier this month, some experts and bankers had suggested that the power to appoint independent directors should rest with the boards of PSBs to enhance accountability

As things stand, the govt has over 80% ownership in six banks: Bank of India, Indian Overseas Bank, Punjab & Sind Bank, Bank of Maharashtra, Central Bank of India, and Uco Bank

Citing increased workload, a parliamentary committee has said public sector banks have to be very fast with public dealing besides being absolutely updated on the latest technology. In its latest report, the panel also said the pattern of recruitment examination needs to be changed from time to time taking into account the nature of the work of the bankers so that accuracy and speed of the prospective candidates are properly evaluated. "The philosophy of speed and accuracy required by bankers are changing from time to time. Around 10 years back, the workload and the nature of work perhaps did not need any speed or accuracy. "But today, speed and accuracy play a very important role owing to the hundreds of central and state schemes being executed by the bankers and the nature of pro-poor schemes launched by the government," the Department-Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice has said. The Committee emphasised that because of the .

In his early days, PM Modi had said that the government would get out of most sectors, a vision which was given credence through the new policy of 'strategic sectors' announced by Sitharaman in 2020

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

Former RBI governor D Subbarao has suggested that the government should come up with a 10-year road map for privatisation of all Public Sector Banks (PSBs) as it would provide much needed predictability to stakeholders. Subbarao further said that the big bang approach to privatisation of state-owned banks is not desirable but at the same time the issue should not be put on the back burner. "Ideally, we should have a road map, maybe over a 10 year timeframe, to privatise all PSBs. "That will give much needed predictability to all stakeholders," he told PTI. Meanwhile, Subbarao said the government should also be thinking about corporatisation of public sector banks so that they come within the umbrella of uniform RBI regulation. In the Union Budget for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises. The government think-tank NITI Aayog has already suggest

The official said while the quantum of stake dilution of both the government and LIC is yet to be decided, the management control in IDBI Bank will be transferred in the strategic sale

While NITI Aayog has suggested names of two banks for privatisation, Centre is yet to make a provision for the divestment of govt stake sale below 51%

Banks clarify no such negotiation or event taking place

Book review of Transformational Leadership in Banking: Challenges of Governance, Leadership and HR in a Digital and Disruptive World

The policymakers could have chosen no better time than this financial year as the financial quality of the PSB balance sheets has improved this year compared with the last few years

Four to five PSBs have been suggested by the Niti Aayog and they will be discussed in the meeting, sources said

The only feasible way to have a healthy banking sector could be making it mostly private, along with two or three large, better-run government banks, writes T N Ninan

In this podcast, Business Standard's Subhomoy Bhattacharjee explains why the Centre again discussing the topic of government owned bank privatisation and more

Wants RBI to relax the rules on ownership in private sector banks

The government will refrain from distress sale of its entities, especially if they are in strategic sectors

It's not all gloom and doom in Indian banking

The call for privatisation gathered currency after diamond jeweller Nirav Modi allegedly colluded with some officials of PNB to fraudulently obtain guarantees