Bank of Maharashtra And Indian Overseas Bank Could Be Next In Line For Privatisation

New Delhi, 4th June 2021: In budget 2021, the Government of India had decided to privatize four banks. NITI Aayog was given the responsibility to present the names of the banks with detailed reports.

As per the media reports, a new list has been handed over for privatization. According to the news of CNBC Awaaz, NITI Aayog has submitted the list of public sector banks to the Core Group of Secretaries on Investment (CCD).

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Sources say that the Bank of Maharashtra and Indian Overseas Bank are on the list. The names of these two banks have come forward in media reports. The names of both the banks have not been officially disclosed yet.

The government intends to have only five public sector banks in the country. Other banks will either be merged or they will be made private. It is being said that the government will merge only those banks whose network will be in the whole country.

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It must be noted that Bank of Maharashtra’s profit has increased three times to Rs 165 crore in the fourth quarter i.e. January-March. In the January-March quarter exactly a year ago, the bank’s profit was Rs 57 crore.

It is learnt NITI Aayog has submitted its list. Now there will be a meeting of the Finance Ministry, Department of Disinvestment and NITI Aayog. After this, the last two names will be sent to the cabinet. Then the process of privatization of these two banks will start.

Experts say that the privatization of public sector banks will not have any significant impact on customers. The services of the bank continue as before.

According to the experts, earlier the government has made IDBI Bank private. The bank was going through a financial crisis for a long time. In September 2019, the government and Life Insurance Corporation of India (LIC) invested Rs 9300 crore in the bank to get the bank out of the crisis. IDBI was a state-run bank, which was formed in 1964. LIC had bought a 51 per cent stake in IDBI by investing Rs 21000 crore. After this, LIC and the government together gave Rs 9300 crore to IDBI Bank. LIC’s stake in this was Rs 4,743 crore.

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