Centre planning to reduce number of State-owned banks to five: Report

Centre is planning to privatise more than half of its Public-Sector lenders and bring down their total number to five as part of its revamping strategy of the banking industry, government and banking, said sources.

Banks

As a part of this plan, centre would be selling majority stake in Bank of India, Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sind Bank, ensuring  an effective privatisation of these state-owned lenders.

Quoting a senior government officer, Live Mint reported that, “The idea is to have 4-5 government owned banks.”

Till date India has 12 state-owned banks.

As per the sources, the centre would strategise a new privatisation proposal the centre is currently formulating, and this would be put before the cabinet for approval.

Sources suggest that centre is working on a privatisation plan to help to raising money by selling assets in non-core companies and sectors when the country is sufferinrbig from lack of funds due to coronavirus pandemic.

Several government committees and the Reserve Bank of India have given their recommendations that India should have not more than five state-owned banks.

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