Bank Privatization: The government is selling this big government bank at an expensive price, don't you even have an account?

Bank Privatization: The process of privatization is going on fast in the country. The number of banks is already coming in this order. Privatization of big public sector banks (bank privatization 2022) is going to happen. For this, the government has also completed the preparations. 

Rakesh Bishnoi Desk | Updated:  Nov 14, 2022, 02:19 PM IST

Bank privatization:  The government is working fast on privatization in the country. Bids have also started coming in for many companies. The process of privatization of public sector banks has also almost started. The government is set to remove the 20% cap on foreign ownership in PSU banks (PSBs) by amending the Banking Regulation Act. In this sequence, the government is first selling its stake from IDBI Bank.

Great plan of the government 

The central government is preparing to sell IDBI Bank at an expensive rate. Bloomberg has quoted sources as saying that the government is looking for a valuation of around Rs 640 billion, or $7.7 billion, for state-owned IDBI Bank Ltd. If this happens, then let us tell you that this will be the biggest sale of government's stake till date. Significantly, the Central Government and Life Insurance Corporation of India (LIC) will jointly sell 60.72 percent stake in IDBI Bank. Shares of IDBI Bank rose 3% on Friday as soon as the news of this Bloomberg News report spread. That is, investors' interest in it seems to be increasing.

Government is moving forward on privatization 

Let us tell you that while presenting the budget for the current financial year, Finance Minister Nirmala Sitharaman had announced the privatization of two government banks along with IDBI Bank in FY 22. Apart from this, NITI Aayog has shortlisted two PSU banks for privatization. Along with this, the Finance Minister had also said that an insurance company will be sold in the current financial year. 

These banks can also be privatized 

Officials with knowledge of the matter say that Central Bank of India and Indian Overseas Bank were selected as possible candidates for privatization. That is, Indian Overseas Bank and Central Bank of India are two candidates which can be privatised, although Bank of Maharashtra is in this list.