The Central Government’s plan to privatize two PSU banks may get postponed to the next financial year (FY23), Bloomberg reported.
The plan was postponed as the government is yet to seek parliament’s approval for changes in laws required to start the transaction. The modalities to seek approval have not yet been finalized, which leaves little time for the process to be completed this year, sources told Bloomberg.
The plan to sell the state-owned lenders was announced by Union Finance Minister Nirmala Sitharaman in February while presenting the Union Budget of India.
“We propose to take up the privatization of two public sector banks and one general insurance company in the year FY22. This would require legislative amendments, and I propose to introduce the amendments in this session (Budget Session) itself.” She said while outlining the budget.
“Other than IDBI Bank, we propose to take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22,” Sitharaman had announced earlier Monday.
The privatization of the country’s second-biggest state refiner may also be postponed to next year, Bloomberg reported in July.
The cabinet approved the amendments to insurance laws to facilitate the privatization of state-owned general insurance companies like LIC and United India Insurance Company.
