NEW DELHI: The Centre is yet to shortlist the name of two public sector banks (PSBs) that are likely to be privatised in FY22 and sources said the government is waiting for third quarter results, before finalising names.
Finance Minister (FM) Nirmala Sitharaman had announced that two public sector banks (PSBs) would be privatised in FY21-22, apart from the IDBI Bank.
There were speculations that the Centre has shortlisted the Central Bank of India (CBI) and Indian Overseas Bank (IOB), but the finance ministry sources said that no names final yet.
“The names are yet to be finalised. While the second quarter result was good, with many PSBs coming out of the prompt corrective action, it would be more prudent to watch for one more quarter,” a senior official from the finance ministry told TNIE.
“Consideration of various issues related to disinvestment, which, inter alia, include the selection of the banks, is entrusted to the cabinet committee designated for this purpose. A decision by the cabinet committee concerned for privatisation of PSBs has not been taken in this regard,” Sitharaman told parliament on Monday.
The government will first introduce the Banking Laws (Amendment) Bill, 2021, which is listed to be introduced in the winter session of Parliament. The Bill is expected to lower the minimum government holding in public sector banks (PSBs) to 26% from 51%. The Centre also wants to see how banks will deal with stressed borrowers as RBI starts unwinding support measures extended during Covid.
41,177 posts vacant in PSBs
The government on Monday said that 41,177 positions or 5% of the sanctioned posts at public sector banks were vacant, with SBI had the maximum number of vacancy at 8,544.
Finance Minister told the parliament that the vacancy in PNB was at 6,743, in Central Bank of India at 6,295, in Indian Overseas Bank at 5,112 and in BoI at 4,848.