NITI Aayog, the government’s apex public policy think tank, has refuted claims made by a section of media of a purported list of public sector banks (PSBs) that are scheduled for privatisation.
“A fictitious message is being circulated in media regarding a list shared by NITI Aayog on the privatisation of Public Sector Banks. It is hereby informed that no such list as mentioned has been shared by NITI Aayog in any form,” it said in a release.
Recent reports by a section of media speculated on the existence of a list of PSBs set for privatisation which included some of the country’s largest public sector banks such as the Punjab National Bank (PNB), Union Bank, State Bank of India (SBI), Canara Bank, Indian Bank and Bank of Baroda.
The government on December 19 clarified that it would take a view on the privatisation of PSBs after consultation with the department and regulator concerned.
Minister of state for finance Bhagwat Karad, in a written reply to the Lok Sabha, noted that 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.
{{/usCountry}}Minister of state for finance Bhagwat Karad, in a written reply to the Lok Sabha, noted that 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.
{{/usCountry}}“Before such consideration for decision thereon, consultation is undertaken with the ministries and departments concerned and, where necessary, with the regulator concerned,” Karad noted.
Reportedly, in April 2021, NITI Aayog, after consultations with the Finance Ministry, started deliberations to finalize the names of two public sector banks that would be privatised. The government think-tank was entrusted with selecting the names of two public sector banks and one general insurance company for privatisation as announced in the Budget 2021-22.
In March 2021, finance minister Nirmala Sitharaman explained the rationale behind the privatisation of PSU, noting, “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.”
Sitharaman also elaborated that the interests of workers of banks which are likely to be privatised will absolutely be protected, and concerns regarding their salaries or scale or pension 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).
The government initially announced its intent to take up the privatisation of two PSBs in the Union Budget for the financial year 2021-22 and a policy of strategic disinvestment of Public Sector Enterprises was announced.