The Finance Minister has announced in the budget that two Public Sector Banks (PSBs) will be privatized. It has also announced Rs 20,000 crore recapitalization of PSU banks. Moreover, the disinvestment process of IDBI Bank will also be completed in the next fiscal. Privatization of some PSBs is needed because the government has been investing huge amounts in them every year in the last decade to keep these banks from collapsing.
In this Banking brief, you will know more about government proposal on privatization of PSBs, merits and demerits of the same as well as the way forward.