NITI Aayog recommends privatisation of Central Bank, Indian Overseas Bank

There was only a list of six non-merged public sector banks that the government was considering for privatisation after the announcement was made in the Union Budget in February.

Now it has been given to understand that the NITI Aayog has made a recommendation that the Indian Overseas Bank (IOB) and Central Bank of India are the two candidates that are considered for privatisation exercise.

However, this is not final yet because the ministerial group has to consider this before the cabinet will give its final nod and it is only after that that the process of privatisation can even kick off.

Both of these banks are under Reserve Bank of India’s (RBI) prompt corrective action (PCA) for the last many years. Despite restrictions, they have been able to grow but both are facing issues when it comes to the asset quality front.