Govt to take view on privatisation of public sector banks

Consideration of issues related to disinvestment and decision on selection, terms and conditions, etc. in case of strategic sale is entrusted to the Cabinet committee designated for this purpose under the Government of India (Transaction of Business) Rules, 1961, minister of state for finance Bhagwat Karad said in a written reply to Lok Sabha.

“Before such consideration for decision thereon, consultation is undertaken with the ministries and departments concerned and, where necessary, with the regulator concerned,” he said.

In the Union Budget for the financial year (FY) 2021-22, he said, the government’s intent to take up privatisation of two PSBs and approval of a policy of strategic disinvestment of Public Sector Enterprises (PSEs) was announced.

The objectives of the policy include enabling the growth of public sector enterprises through the infusion of private capital, thereby contributing to economic growth and new jobs, and financing of social sector and development programmes of the government, he said.

A bank is classified as a Public Sector Bank (PSB) or a Private Sector Bank (PVB) by the Reserve Bank of India (RBI).