The government is considering amending the Banking Act to allow the option to sell the shares of public sector banks altogether, according to three officials who are aware of the matter.
The Treasury is considering submitting a pending banking law (amendment) bill in 2021 at the upcoming monsoon parliament, officials said on anonymous terms, as the issue has not yet been announced. rice field. They said there are deliberations going on to reduce the government’s minimum amount of government holdings in public sector banks from the current 51% to zero.
During the US roadshow for IDBI Bank and discussions with potential bidders, the general proposal received was to sell all shares of the state-owned bank’s government, quoted above. One of the officials said. The government is reviewing those proposals and weighing the pros and cons. Officials said changes would be made through fine-tuning the 2021 Banking Act (amendment) bill.
According to the second official quoted above, a core group of secretaries consisting of investment and public assets management, financial services and finance officials met and discussed the proposal. It also has a go-ahead from NITI Aayog. The proposal was submitted to the Ministry of Finance, officials said.
A second source from there said the proposal would be sent to the Cabinet Economic Committee. Only after the green flag from them on the bill can it be introduced into Congress. The government does not have to offload all shares of all state-owned banks. This is a cleared mechanism, officials said.
Earlier, the government was considering reducing the minimum holdings to 26%, a second official said.
The BQ Prime email inquiry to the Treasury was unanswered.
The 2021 Banking Act (amendment) bill was first listed in last winter’s parliament, but was not introduced. A report on Lok Sabha’s legislative business on November 23, 2021 stated that the purpose of the bill was “Amendments to the Banking Companies (Acquisition and Transfer of Business) Act of 1970 and 1980 and ancillary Amendments to the Banking Regulation Act of 1949. To carry out. ” The context of the Union Budget Announcement 2021 on the Privatization of Two Public Sector Banks. “
In a 2021 budget speech, Treasury Minister Nirmala Sitharaman announced that two public sector banks would be privatized without name. However, The Economic Times and Mint have nominated the Central Bank of India and the Bank of India Overseas. The central government currently holds 96.38% of the Bank of India and 93.08% of the Central Bank of India.
The government is aiming to raise 65,000 rupees After failing to reach the 2010 target of 175 million rupees, it was sold from 2022 to 2011. So far this year, we have raised 24,543.4 rupees, including 20,516.12 rupees from the LIC Maiden.
Government Maru amending the Banking Act to allow the option to sell completely
https://www.bqprime.com/business/government-mulls-amending-banking-law-to-allow-option-to-fully-divest Government Maru amending the Banking Act to allow the option to sell completely