The government will work with the Reserve Bank to implement the bank privatization plan – Finance Minister
Mumbai: Finance Minister Nirmala Sitharaman said here today that the government would work with the Reserve Bank to implement the privatization of banks as announced in the recently presented budget.
Speaking to reporters in Mumbai, the country’s financial capital, Sitharaman said the government has no plans to set up a bank investment company to raise its stake in the bank.
In the budget presented last week, the finance minister announced the privatization of two banks as part of the disinvestment scheme. So the trade unions in the banks have opposed it.
A detailed review of how to do the work is being done. “Even though I have announced in the budget, we are working with the Reserve Bank,” he said when asked about the proposal.
However, he declined to give details on which candidate would be selected for privatization. “We will inform you when the government’s announcement is ready,” she said.
Regarding bad banks, Sitharaman said the government would have to provide a guarantee for the National Asset Reconstruction Company (ARC). But given the strain on the banks’ balance sheets, they have come up with a solution. Earlier mismanagement led to an increase in banks’ NPAs, she said. He also said that there is no ‘phone banking’ for ‘favor’ from anyone in New Delhi at present.
The government’s disinvestment policy is not for the benefit of any family
The government’s disinvestment policy is not for the benefit of any family as alleged by the opposition, Finance Minister Nirmala Sitharaman said. He gave the above explanation at a function here on the proposal to privatize two state-owned banks. The government is focused on strengthening government initiatives and these initiatives need to be run in a professional manner. They should be viewed from the right perspective. Opponents say no decisions are made for the benefit of any family. On the banking sector, she said the Indian economy needs 20 banks the size of the State Bank of India (SBI). The government needs to pay less attention to the strategic area. He also said that the government will not stay at all and in some areas private companies will be given space.