GOVT MAY SELECT TWO PSU BANKS FOR PRIVATISATION BY MARCH END

The government is likely to identify by Mar-end two public sector banks and one general insurance company that are scheduled for privatisation in the next financial year starting April, a senior government official said.

The departments of financial services and disinvestment and NITI Aayog will decide the roadmap of the process, the official told Infor mist, adding that the government may look at private equity funds, private and foreign banks to pick up its stake in the two PSU banks.

The government could also look at selling stake in these banks through offer for sale, the official said.

The Budget for 2021-22 (Apr-Mar) had proposed privatisation of two public sector banks and one general insurance company in the next financial year.

Privatisation of public sector banks will require legislative amendments, which will be introduced in the cur

PE funds, foreign, private banks possible buyers for PSU banks. Government is mulling different options including offer for sale

rent session, Finance Minister Nirmala Sitharaman had said in her

Budget speech.

The experience of privatising IDBI Bank could form the basis for privatising the two PSU banks, the official said.