Modi Government Privatisation buzz, the government may privatize the Central Bank of India and the Indian Overseas Bank.

By Lokmat English Desk | Published: November 25, 2021 06:56 PM2021-11-25T18:56:10+5:302021-11-25T18:56:10+5:30

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In the current financial year, the Modi government at the Center, while presenting the budget, has expressed its intention to raise Rs 1.75 lakh crore through disinvestment. The Modi government has come up with a mega plan to privatize several companies, including Air India.

It is being said that now the Modi government has shifted its focus to banks for privatization. The Modi government at the Center is preparing to privatize two more public sector banks.

The government may introduce a bill to amend the Banking Act in the winter session of Parliament to privatize the two state-owned banks. The government may privatize the Central Bank of India and the Indian Overseas Bank.

The winter session is starting on November 29. News of the privatization of these banks led to a 20 percent rise in shares of both banks. Finance Minister Nirmala Sitharaman announces privatization of two public sector banks in the 2021 budget.

Now work has started in this direction. Shares of Indian Overseas Bank (IOB) were up 20 percent on news of privatization. The stock had gained 20 percent to Rs 23.80 on the BSE. Shares of the Central Bank of India rose 15 percent to Rs 23.65.

Apart from this, Bank of Maharashtra's share has risen by 9 percent and Bank of India's share by 3 percent. In the first phase, five associate banks were merged into the State Bank of India.

Also, Vijaya Bank and Dena Bank were merged into Bank of Baroda. At present, there are only 12 public sector banks left in the country.

While presenting the Union Budget, the Modi government had set a target of raising Rs 1.75 lakh crore for disinvestment and privatization. In the current financial year, two public sector banks and one insurance company will be privatized.

The Modi government plans to sell six more state-owned companies in the current financial year. In addition to BPCL, these include BEML, Shipping Corp, Pawan Hans, Central Electronic, and Nilanchal Ispat.

Also, financial bidding for BEML, Shipping Corp, Pawan Hans, Central Electronic, and Nilanchal Ispat can be done in December-January. The process of privatization is also expected to be completed this financial year.

LIC's IPO may be launched in the fourth quarter of the current financial year between January and March. The government will sell up to a 10 percent stake in LIC. They are expected to get Rs 10 lakh crore from this.

If the government sells a 5 percent stake in LIC, it will be the largest IPO in the country. And if it sells a 10 percent stake, it will be the IPO of the world's second-largest insurance company.