NITI Aayog Submits Names Of Public-Sector Banks That Could Be Privatized In Current Fiscal Year: Report

NITI Aayog Submits Names Of Public-Sector Banks That Could Be Privatized In Current Fiscal Year: ReportNITI Aayog Vice Chairman Rajiv Kumar (Vipin Kumar/Hindustan Times via Getty Images)

The NITI Aayog has submitted its final list of the names of the public-sector banks (PSBs) that can be privatized in the current fiscal year as a part of the central government’s disinvestment targets.

Union Finance Minister Nirmala Sitharaman had revealed during Budget 2021 that the government intends to privatize two PSBs along with a general insurance company in this financial year.

The names have been submitted to the Core Group of Secretaries on Disinvestment headed by the Union Cabinet Secretary Rajiv Gauba.

Upon their approval, the names will move ahead to the Alternative Mechanism (AM) for their permission and head towards the Union Cabinet led by Prime Minister Narendra Modi.

The cabinet’s final nod will be essential for the regulatory side alterations to expedite the privatization process.

Finance Minister Sitharaman has assured that the interests of the employees of the soon-to-be-privatized PSBs will be provided absolute protection as adequate care will be taken about their salaries, scale of pensions etc.

“We need banks which are going to be able to scale up... We want banks that are going to be able to meet the aspirational needs of this country,” she was quoted in a report by Business Standard.

The government has set an ambitious target of raising Rs 1.75 lakh crores by selling stakes in public sector companies. These financial institutions will include the two PSBs mentioned above and a general insurance company.