Government stays the course on bank privatisation: Sources

The government is on course with the privatisation of two public sector banks (PSBs) and will take appropriate steps in the coming months, sources said. In the Union Budget for 2021-22, the government announced its intent to take up the privatisation of two PSBs in the year and approved a policy of strategic disinvestment of public sector enterprises.

According to sources, the government is committed to the privatisation of two public sector banks and it is on course. Besides, sources also said the divestment of BPCL is also on the card and fresh bids will be invited.

The government had to cancel the sale as only a single bidder was left in the fray, sources said. The government had planned to sell its entire 52.98 per cent stake in Bharat Petroleum Corporation Ltd (BPCL) and invited Expression of Interest from bidders in March 2020. At least three bids came in by November 2020 but only one remains now after the others withdrew from the race.

On the strategic sale of Container Corporation of India (Concor), sources said, there are some issues and the process would be undertaken after those are resolved. The Cabinet, in November 2019, had approved the strategic sale of a 30.8 per cent stake, along with management control, in Concor out of the government equity of 54.80 per cent. The government will retain 24 per cent stake post-sell-off but without any veto powers.