homeeconomy NewsGovt may bring Bank Privatisation Bill in Monsoon Session and lower stake in PSBs to 26%
Govt may bring Bank Privatisation Bill in Monsoon Session and lower stake in PSBs to 26%
The government is likely to retain a minimum presence in banking as a strategic sector and exit only those PSBs that are identified for privatisation, the sources said.
The Narendra Modi government is awaiting the Law Ministry's view on the Bank Privatisation Bill as it aims to move the same in the upcoming Monsoon Session of Parliament.
The government may lower the minimum stake in public sector banks (PSBs) to 26 percent from 51 percent, sources told CNBC-TV18.
The sources added that the government is likely to retain a minimum presence in banking as a strategic sector and exit only those public sector banks that are identified for privatisation.
The government has stakes in some banks that might get privatised such as the Indian Overseas Bank in which it has a 96.38 percent stake, Central Bank of India in which the government has a 93.08 percent stake, and UCO Bank in which it has a 95.39 percent stake, the sources added.
While presenting the Budget for 2021-22, Finance Minister Nirmala Sitharaman had announced the privatisation of PSBs as part of a disinvestment drive to garner Rs 1.75 lakh crore.
In the Monsoon session last year, Parliament had passed a bill to allow privatisation of state-run general insurance companies. The General Insurance Business (Nationalisation) Amendment Bill, 2021, removed the requirement of the central government to hold at least 51 per cent of the equity capital in a specified insurer.
The Monsoon Session is to commence on July 18, the day the presidential poll will be held and could conclude on August 12.
This could be the last session in the existing Parliament building, as the Lok Sabha Speaker on several occasions has announced that the 2022 Winter Session would be held in the new building.
First Published: Jul 11, 2022 2:42 PM IST
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