PIB debunks media report on Bank Privatisation, NO list shared by NITI Ayog on privatization of SBI, Canara Bank, PNB and others

Finance Minister Nirmala Sitharaman had last yera said `interests of workers of banks which are likely to be privatised will absolutely be protected whether their salaries or scale or pension all will be taken care of`. Explaining the rationale behind the privatisation, Sitharaman had said that banks in the country needed to be bigger, just like the State Bank of India (SBI).

New Delhi: There has been a sudden buzz regarding a Niti Ayog list on Bank privatisation that includes the country's public sector banks State Bank of India (SBI), Punjab National Bank, Union Bank, Canara Bank, Indian Bank and Bank of Baroda. Debunking reports in the media, PIB has said that no such list has been shared by NITI Ayog.

Though the unexpected buzz around privatisation of these public sector banks can't be ascertained, Niti Ayog had infact released a list of banks for privatisation. The list released in March 2021 had kept State Bank of India (SBI), Punjab National Bank, Union Bank, Canara Bank, Indian Bank and Bank of Baroda out of the bank privatisation list. In other words, these banks are not going to be privatised.

The government on 19 December 2022 said it will take a view on privatisation of Public Sector Banks (PSBs) after consultation with the concerned department and regulator. Minister of State for Finance Bhagwat Karad said in a written reply to the Lok Sabha had said, "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 the Lok Sabha."

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 government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and one insurance company, during the current financial year. The amount is lower than the record budgeted Rs 2.10 lakh crore to be raised from CPSE disinvestment in the last fiscal.

With PTI Inputs