Sans Parl nod, govt may have to defer sale of two PSU banks to next year

The finance ministry is yet to work out the modalities to seek approval from lawmakers for the sale, leaving little time for the process to be completed this year.

The Narendra Modi-led Union government’s attempts to sell two public sector banks may get deferred to the financial year as no approval has been taken from Parliament for making changes in laws required to initiate the deals.

The modalities for the sale is yet to be worked out. (Pradeep Gaur/ Mint)

According to a Bloomberg report, the finance ministry is yet to work out the modalities to seek approval from lawmakers for the sale, leaving little time for the process to be completed this year.

In February this year, Finance Minister Nirmala Sitharaman had said the government will seek buyers for two state-run banks by March 2022. She made the statement while presenting the Budget for the current financial year.

The report said no spokesperson from the finance ministry was available for comment.

In June, government think-tank Niti Aayog had submitted a list of public sector banks that are to be privatised in the current fiscal year to the Core Group of Secretaries on Disinvestment.

The Central government’s plan to sell a majority stake in the country’s second-biggest state refiner has also slowed down, and the transaction may only take place early next year, Bloomberg had reported in July. The administration could still go ahead with other asset sales, including Life Insurance Corp. of India’s initial public offer, that could help the government raise funds to make up for any fall in tax revenues this year.