Privatisation of two public lenders, which was announced back in 2021-22, may return to the discussion table
With record low NPAs and strong capital ratios, public sector bank balance sheets are the healthiest in a decade. There are better chances of finding buyers now. But actual execution will require strong political will
The DFS secretary said that currently there is no case for bank consolidation as even the small banks are performing well.
PSB privatisation is politically risky. It involves regional interests (every bank has a local area stronghold) and no government can risk a political backlash when effecting such a move.
Finance Minister Nirmala Sitharaman on December 7 said that the Union Budget on February 1 is unlikely to have any spectacular announcements.