The central government’s target to privatize two public-sector banks (PSBs) in the current fiscal year has moved a step ahead as a panel headed by Union Cabinet Secretary Rajiv Gauba has approved the name of the lenders for the purpose.

Apparently, the Central Bank of India (CBI) and the Indian Overseas Bank (IOB) are set to be proposed for disinvestment as reported by news channel CNBC-TV18.

Meanwhile, the Union Finance Ministry is simultaneously carrying out legislative amendments for the privatization of the PSBs.

Apparently, this panel led by Gauba had held discussions on 24th June regarding the names of the banks suggested by the NITI Aayog for this exercise. Now, this concerned committee will be sending the names of the shortlisted banks to the Alternative Mechanism (AM) for further consideration.

Following that, the names will proceed to the Union Cabinet for the final approval before alterations on the regulatory front kick in to carry out the privatization process.

Union Finance Minister Nirmala Sitharaman had announced in her Budget speech earlier this year that the central government intends to privatize two PSBs in the ongoing fiscal year.

In addition to that, a strategic disinvestment of the IDBI Bank has also been targeted as the government plans to generate revenue worth Rs 1.75 lakh crore through stake sales in public-sector companies and financial institutions this year.