Cabinet secretary-led panel holds crucial meeting on bank privatisation
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Last Updated: Jun 27, 2021, 12:33 PM IST
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Synopsis
The meeting of the high-level panel deliberated on the recommendation of the NITI Aayog on Thursday June 24, sources said, adding the panel would after tying up all loose ends will send the names of the shortlisted PSU banks to AM for consideration.
Inching a step closer to privatisation of two public sector banks, a high-level panel headed by the cabinet secretary recently held a meeting to thrash out various regulatory and administrative issues so that the proposal could be placed with the group of ministers on disinvestment or Alternative Mechanism (AM) for approval.
Venky s (India): The domestic poultry firm is the global leader of specific pathogen free (SPF) eggs, which are used for vaccines. The demand for these eggs has gone up recently. The counter surged 28 per cent during the week to Rs 3,424.35 on Friday.
Indian Overseas Bank,
Central Bank of India: According to media reports, the two PSU lenders have been shortlisted for privatisation. It is expected that the government will bring amendments in the Banking Regulation Act for divestment of state-owned banks.
Indian Overseas Bank soared 26 per cent to Rs 24.85, whereas Central Bank of India jumped 23 per cent to Rs 24.8.
HFCL: The company is among the 25 telecom gear makers that have applied under the Rs 12,195 crore production-linked incentive scheme for the sector. The stock surged 23 per cent during the week to Rs 64.7.
India Business News: NEW DELHI: Inching a step closer to privatisation of two public sector banks, a high-level panel headed by the cabinet secretary recently held a meeti.
Two banks — HDFC Bank and SBI — contributed half of the industrys profits. Of the total profits, HDFC Bank at Rs 31,116 crore accounted for 30%, an 18% increase over the previous year.
Synopsis
Bank of Maharashtra, Bank of India, and IOB are the frontrunners for being privatised. Central Bank of India may be taken up based on its financial recovery. Punjab & Sind Bank and UCO Bank, the other two lenders that were not merged as a part of the public sector bank consolidation, are not being considered for privatisation yet, officials said.
Agencies
Banks will be nudged to exit their non-core businesses to improve their financials before privatisation
The government plans to dress up state run lenders’ balance sheets through capital support and sale of non-core assets among other measures before putting them on the block. The transformation plan also includes transfer of impaired loans to the proposed bad bank and reducing employee count by offering attractive voluntary retirement schemes, officials aware of the developments said.